DEAR SIR: I was heartened to read that Lakeland Dairies had increased its fixed milk price contracts (FMPC) by 8c/l for April to December milk supplies of this year. The increase is widely welcomed and the inclusion of no caveats or conditions must be commended.

All suppliers who entered into FMPC did so with a view to minimising uncertainty and risk. The unprecedented rises in input costs and milk price over the past 24 months have left farmers lamenting a decision that in any other time would have been seen as a very prudent and pragmatic measure.

My deepest sympathies are with the Glanbia suppliers in precarious situations, with large volumes of milk committed to FMPC. With a milk price locked into contracts that are nearly 20c/l behind market prices, farmers have been left in a position where the cost of production is higher than the price they are receiving, leaving them with their solvency at real risk. I hope something can be done for these farmers and soon.