WA cattle producers should move now to rebuild the State's herd numbers.
That is the call from WA Lot Feeders Association president Trevor Hinck who has just returned from a month long trip in the US looking at its beef market.
While Australia and the US are both experiencing elevated prices, Mr Hinck said it was a very different situation here at home.
He said rising beef prices in the US were caused primarily by a major drought on the west coast, but the reason for the rising prices here were much more positive.
"It is interesting Australia has mirrored record saleyard movements in the US because although we are experiencing a drought on the east coast, our price improvements have been driven by export demand, both boxed and live," he said.
"The global appetite for Australian beef is insatiable, every time someone comes back from China or from Asia you hear how they want more and more of our beef.
"We have to gear up to be able compete."
Mr Hinck said he believed because prices were being driven up by genuine demand, they were less likely to drop away quickly.
"When prices are driven by demand outside of a domestic market, I would assume that demand is not going anywhere," he said.
"This is very good news for cow-calf producers and for those who are considering retaining or even rebuilding their herds.
"When we have a long-term outlook and a demand that says we want Australian beef, producers can start to rebuild with some confidence."
Mr Hinck hoped improved demand signals from around the world would be the kick industry needed to invest improving stock numbers.
"I'm not sure if we will see the herd rebuild starting the South West or if we will see a shift in where the herd is built," he said.
"Maybe we will see cattle move back into Wheatbelt areas or where land is a bit cheaper.
"But we have been seeing demand for good British breed steers and heifers almost all year round."
Mr Hinck said saleyard beef prices had improved considerably in the past 12 months, increasing by as much as 40 cents a kilogram.
"I have heard prices of as high as 260-270c/kg being paid for store cattle," he said.
"These are certainly prices we haven't seen in a long time and they aren't looking to go anywhere."
According to the latest Rabobank report, Beef Quarterly Q2 2014, US feeder cattle and calf prices were at all-time highs with no easing in prices expected.
Local newspapers were reporting the prolonged drought had shrunk the US cattle supply to six decade lows.
The Rabobank report stated that in April and May US weekly fed slaughter rates were much closer to year ago levels, but once the supply of summer fed cattle was worked through the system, supplies were expected to tighten and prices strengthen through the rest of this and the beginning of next year.
Mr Hinck said drought conditions in the US were favourable for Australian producers as the US had traditionally been a major competitor in our top end export markets of Korea and Japan.
"When you have a competitor that is finding it difficult to maintain its domestic supply, it is good news for Australian producers," he said.
