The Australian Beef Association says the indicative price paid to producers on the east coast has dropped 18 per cent, but prices in the supermarkets are unchanged, or have gone up.

ABA chairman Brad Bellinger says the drought conditions mean more cattle are being sent to market, which is not being reflected.

"The retail price for beef has actually risen more in Australia than any other country in the world in the last 11 years," he says.

"Beef prices should be dropping substantially and it's ridiculous when you hear comments made by the Prime Minister that due to the drought the price of food will increase.

Source: ABC Online