Mr Armstrong said the dismal state of the WA beef industry had resulted in producers opting out of breeding cattle, and it was the larger producers making that choice.

"It's the bigger producers that are getting out, not the smaller ones," Mr Armstrong said.

"I think we'll start to feel the impact of this in 12 months time.

"You only have to look at the number of weaner sales we used to have, compared to the number we have now."

Mr Armstrong said this year's breeder sales left many producers making less money than they would have if they had sold their cattle for slaughter – just another contributing factor to a high pressure situation for cattle breeders.

"I know blokes who have gone out of cattle in favour of breeding sheep," he said.

"I've been through three beef crashes in my time, but I have never seen one where costs are as high as they are today.

"If you ran 300 breeders and averaged $500 for your calves, that would get you $150,000.

"That's $150,000 for all your fertiliser and other inputs, and then if you need to hire labour it is worse.

"It's a struggle, even on $300,000 it's a struggle.

"That is why our industry is shrinking at a rapid rate."

Some in the industry had suggested that the cattle herd in the north of the state could sustain the industry, but Mr Armstrong said the bos Indicus types were simply not suitable for the domestic market.

He said he believed the live export industry would continue to go from strength to strength, and was an integral part of the beef industry, now even in the South West.

Where that leaves the domestic market however, is the big question.

"I've dealt with cattle since I was 14 years-old and have never seen a situation like this," Mr Armstrong said.

"Not one person I've spoken to is increasing their breeder numbers, we are, but that's only so we can secure our own supply.