Australia’s largest chicken producer, Ingham’s Group, has warned that poultry and egg prices could rise as the H5 bird flu outbreak adds to industry costs. Although no commercial poultry cases have been reported, chief executive Edward Alexander said the virus poses a significant risk and that higher operating costs may ultimately be reflected in retail prices.

Ingham’s, which supplies about 40 per cent of Australia’s chicken meat, says costs have risen by $130 million because of bird flu-related pressures, the Middle East crisis and inflation. H5 bird flu has spread from migratory birds to native Australian species, with South Australia reporting 46 new incidents including first detections in a common dolphin and a fox; Ingham’s says chicken demand has not yet been affected.