Brazilian police find cocaine ‘baggie factory’

Brazilian police stumbled across a cocaine 'baggie factory' with a machine that can reportedly fill 150,000 bags of drugs each day.

Police in Sao Paulo raided a middle-class home in the Jardim Avelino neighbourhood on Monday.

Three people were arrested and authorities found more than 10kg of cocaine.

The video shows how the machine packs cocaine into bags using a flow through method, the same way chips are packaged.

Officers can be heard speaking in the background of the video in Portuguese

"Hey Marcão! A baggie factory! It's 150,000 baggies per day. Each for 10 reais, producing 1.5million reais each day! Take a look. It's madness!" one cop says, according to the Daily Mail.

One Brazilian real is about AU40 cents, making 1.5 million real worth nearly $600,000.

In Australia, a gram of cocaine is reportedly worth around $300.