MEMBERS of a deadly Mexican drug cartel — responsible for kidnappings, beheadings and thousands of murders — have set up shop in Australia.

Drug criminals from Mexico’s most powerful drug cartel, the Sinaloa Federation, are basing themselves in eastern states to distribute hundreds of kilograms of drugs, including ice, heroin and cocaine.

Federal crime-fighting authorities are concerned that Sinaloa and other Mexican cartel members are increasingly coming here to profit from our lucrative drug market.

Australian Crime Commission chief Chris Dawson said the nation’s peak policing groups were working with US Drug Enforcement Administration officers to combat the threat.

“You only need to look to the violence on the streets in Mexico and the thousands of people who have died at the hands of Mexican drug cartels, to realise how dangerous these groups are,” Mr Dawson said.

“And they are now looking at Australia as a destination to facilitate their crime.”

Victoria’s Chief Commissioner Ken Lay said the developments were concerning.

“There is a whole lot of violence attached to these cartels and these people starting to reach into Victoria is very, very worrying,” he told 3AW.

Mr Lay said Victorian police were working with federal authorities to stop the infiltration of such groups.

“It’s no longer just geographical based,” he said.

The authorities’ fears come as two alleged Mexican cartel members were charged after police seized $30 million worth of crystal meth — or “ice” — in a raid in Sydney in July.

Two guns and $2 million were also seized in the raids.

The Herald Sun has been told Sinaloa members are expanding their Australian networks, having arrived in recent years, and that members of other rival Mexican cartels have also moved in here.

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The Mexican gangs, which traditionally ran cocaine but have diversified into heroin and ice, are now forming “crime co-operatives” with local bikie gangs.

Mexican drug kingpins can get $50 by selling a dose of ­heroin in Australia that would sell for $4.50 in the US.

Mr Dawson said he was concerned about the threat of the Mexican heroin trade spreading here.

“The US authorities have provided warnings to me from the DEA to say the Mexicans are now producing heroin,” he said. “Heroin has increased greatly in the US.

“There is an element of that which Australia should be concerned about. We are working very closely with the US authorities in regard to Mexican and other nationalities because there is very strong intelligence regarding very serious drug importation.”

An Australian Federal Police spokesman said: “Criminal organisations based overseas, including Mexico, are willing to consider Australia as an option for importation and distribution of border-controlled drugs because the price they can obtain is significantly higher than in other markets.

“The significant impact of international organised crime syndicates on the Australian drug market has been identified by both the AFP and its international law-enforcement partners.”

Roman Quaedvlieg, deputy CEO of Border Enforcement at Australian Customs and Border Protection Service, said the Mexicans were looking at Australia as a retail market.

“They are looking for locally based organised crime gangs and we all know OMCGs (outlaw motorcycle gangs) are prolifically criminal and they are involved in all sorts of enterprises in terms of criminality,” he said.

Tristan Reed, a Mexico ­security analyst at Texas-based global intelligence firm Statfor, said Sinaloa began moving cocaine into Australia. He said Mexican cartels’ power in Australia may increase as authorities cracked down on ice.

Do you know more? Email stephen.drill@news.com.au or david.hurley@news.com.au