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I would omit the last part starting with "My preference is to sell birds...." and "Having you guys as repeat buyers...". As someone else noted, too personal. Stick to the business facts since your birds are income to you.
Spelling correction of "cockerels" as you'll want to put on as professional manner as possible.
Maybe add an estimated price of the game bird too since you initially mentioned it and expressed a desire to be compensated for it - and if you've ever had any vet bills associated with this game bird, that needs to be clarified as well.... Provide COPIES of the receipts if they ask for them. You're self-limiting yourself to just $28 in your letter, no more without adding the game bird in with potential vet expenses. If the dog tore up any fencing to access your flock, that needs to be addressed too. If there's damage, there's damage! You need to be compensated for it all!
None of this even begins to cover the disposal of the dead birds either... and the fact that you're out there having to clean up the mess his dog created for you each and every time. But if you're incurring additional disposal fees for these birds, that needs to be addressed as well. You may not want to address this issue now, but if it continues, you will....
Maybe also find your county/state statutes that cover leash laws and whatnots and those regarding damage to livestock. They're probably already aware of the basics (ignorance is no excuse tho'), but this would make them more law specific aware and let them know YOU are aware of what the law is too. List what statutes number/reference they are and quote directly from them. If they don't believe you, they can take that info and look it up for themselves.
There's so much more than "just" the loss of the birds.... I'm not saying this is a cash cow for you, but there's a lot more to consider here.
There comes a time when apologies or compensation just don't cut it any more. If the neighbors dog continues on it's rampage, you'll need to call in your county Animal Control to give them a citation. If it continues still, you'll need to prepare to take additional action according to the laws provided you. The key is to COVER YOUR A** on everything!! Dot your "i's" and cross your "t's" - keep track of dates these events happened, how many birds you've lost, pictures of them all, pictures of the Lab on your property (video if you can get it), receipts for vet bills or repairs made as a direct result, conversations you've had with this neighbor (record them if you can, but at least write down the dates/times of the conversations regarding these matters!), how many reports you've had to file and those case #'s, etc etc etc. ALL of this and more can help you in the grand scheme of things.
