Australia's most popular meat is set to cost more in coming months. (Supplied: Australian Chicken Meat Federation)
Chicken prices are expected to rise in coming months, even if H5 bird flu doesn't spread to poultry farms.
The industry is facing increasing feed and labour costs, as well as extra pressure from the war in the Middle East.
Companies and farmers are working to keep the virus out of the food chain with increased surveillance and biosecurity measures.
While the H5N1 bird flu outbreak has so far affected only wildlife in Australia, there are concerns about chicken supply and price hikes if the virus gets into commercial flocks.
Ingham's Group provides 40 per cent of the nation's chicken meat, supplying all the major supermarkets, fast food outlets and the wholesale market.
The company's chief executive Edward Alexander told an investor meeting last week that bird flu was a "real and significant risk for the poultry industry."
He said prices would rise, regardless of the bird flu's spread, as the industry deals with increasing costs.
Ingham's poultry factory in Bullsbrook (ABC News: Mitchell Edgar)
The poultry industry, which includes eggs, chickens, ducks and turkeys, has been devastated by this strain of bird flu worldwide.
Once a single bird in the flock contracts the virus, farmers are generally required to destroy or "depopulate" the whole flock because bird flu is highly contagious and lethal.
Europe and the US have been dealing with H5N1 bird flu for more than five years, and while chicken meat production has taken a hit, the impact has been worse for egg production.
About 120 million commercial birds have been culled in Europe since the outbreak began.
Meat chickens are raised indoors, providing some protection from infection by wild birds. (ABC Central Coast: Mary-Louise Vince)
Mr Alexander said Ingham's sent executives to Europe to help prepare the company and its growers for the biosecurity threat, and "invested considerable effort in prevention, surveillance, scenario planning and response protocols."
