The UK's Department for Environment, Food and Rural Affairs (DEFRA) said the risk to public health was very low as it emerged that around 6,000 birds will be culled and a 10-km exclusion zone is in place near the farm in East Yorkshire.
The exact strain has not been confirmed but the H5N1 form, deadly to humans, has been ruled out by DEFRA officials.
"We have confirmed a case of avian flu on a duck breeding farm in Yorkshire - the public health risk is very low and there is no risk to the food chain," a DEFRA spokesperson was quoted as saying by the BBC.
"We are taking immediate and robust action which includes introducing a restriction zone and culling all poultry on the farm to prevent any potential spread of infection. A detailed investigation is ongoing. We have a strong track record of controlling and eliminating previous outbreaks of avian flu in the UK," she added.
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"Based on what we know about this specific strain of avian influenza, the risk to human health in this case is considered extremely low."
An outbreak of a highly contagious strain of bird flu was discovered yesterday at a poultry farm in the Netherlands. The Dutch government has imposed a three-day nationwide ban on the transportation of poultry and eggs and are planning to kill all 1,50,000 chickens at the farm in Hekendorp.
Officials say the strain, H5N8, is very dangerous for bird life and could potentially affect humans, although people can only be infected through very close contact with the affected birds.