Beef Farmer Supplier 
                                                                                                                                                 Name & Address
FAO Beef Cattle Buying Dept
Abattoir X
Address

DATE

Dear Sir

We regret that due to inflationary cost increases including the increases of 100% for fertilizer, 50% for meal, 80% for fuel, 25% for contractors, 30% for machinery costs, 30% electricity costs and 30% labour costs we have had to increase the price our high quality beef to £2.90/k followed by a rise to £3.70/k by the end of the year in 16p/k minimum monthly intervals commencing 31st August 2008, and the last day of every month thereafter until the target is reached.
While we regret the increase we feel we have no option but to initially pass on some and eventually all of the costs to enable us to provide you with a continuing supply of top-quality beef.
We are sure you will understand the situation and look forward to your continued support, and a base price of £3.70/k inflation linked by the end of the year.

Yours sincerely



Beef Farmer Name


NOTE – Unfortunately any short fall paid by your company ref letter above will be invoiced immediately.