MEXICO CITY, Oct 8, 2008 (AFP) - South America produces all the world's cocaine, around 950 tonnes per year, and Europe and the United States are the biggest consumers, the head of the UN drug agency said Wednesday.

'South America produces 950 tonnes of cocaine, all that is produced in the world,' said Antonio Acosta, secretary general of the United Nations Office on Drugs and Crime at a regional security meeting.

Drug users in Europe and the United States consume almost all of it, and Central American and the Caribbean 'are trapped in the crossfire of drugs and arms,' Acosta added.

He deplored the activities of drug gangs across the continent, on the second day of a two-day security conference of justice officials from 34 countries of the Organization of American States (OAS).

Production levels are stable and consumption is down, he said, but 'the problems caused by drug-trafficking will only be displaced to other regions'.