The commentary is released by the Department of Agriculture and Food WA (DAFWA) and the WA Beef Council and one of the key statistics was that the beef industry in WA represented 28 per cent of the value produced by all WA livestock industries.

WA Beef Council chairman Tony Hiscock said based on the commentary it was obvious that demand for red meat protein was high and that could only be a positive for the industry.

"There is a growing demand for beef globally but there is a limited supply," Mr Hiscock said.

"I think what is the normal balance of trade is a little bit out of whack."

Mr Hiscock said the last time he had seen margins like this was in 2002 and said producers needed to capitalise on the high end of the cycle.

"It is not going to last forever," he said.

"At the moment we know the lotfeeders and the processors are hurting but we know they are hurting almost silently because they know they have got to try and beat the market and they know it will turn around."

Mr Hiscock said it was important to recognise the role live exports had played in the success of the industry.

"I think the other part of it is that there are still some unknowns in terms of the economic climate in Europe and North America," he said.

"But all the indicators are saying things will be quite positive as far as beef goes.

"I think that being in the beef industry in the short term at least is going to be a good thing.

"We are still seeing good amounts of beef exported to Russia and the United States."

The WA Beef Commentary predicted increased supply out of eastern Australia could be expected following the drought breaking season and strong heard rebuilding.

The commentary said the high Australian dollar and increased competition in key markets will continue to challenge export-oriented businesses by squeezing margins.

It said live export reforms were likely to lead to changes in the balance of trade to individual countries.