Until June 2026, Australia held a distinction no other continent could claim: complete freedom from the H5N1 clade 2.3.4.4b strain of avian influenza that has devastated poultry flocks across Europe, Asia, Africa and the Americas since 2021. That distinction has now ended.
On 20 June 2026, a vagrant migratory seabird found in Cape Le Grand National Park on Western Australia's southern coast tested positive for high pathogenicity H5N1. As at 15 July 2026, Australia has 14 confirmed or presumed positive detections in wild birds: eight in Western Australia, five in South Australia and one in New South Wales, most recently a giant petrel found near Hawks Nest. All detections to date are in wild seabirds. There is no evidence of infection in commercial poultry, no evidence of mass mortality events and currently no trade restrictions on Australian poultry or poultry product exports.
For poultry producers, this is not cause for panic, but it is a genuine inflection point. Australia's biosecurity system has successfully contained every prior HPAI incursion, including the H7N3 and H7N9 outbreaks that hit eight Victorian properties in 2024 and the H7N8 outbreak that affected four Victorian properties in early 2025. Both were eradicated within months. H5N1 clade 2.3.4.4b, however, behaves differently to the H7 strains Australia has dealt with before. Globally, it has proven more transmissible in wild bird populations, more persistent, and more capable of spilling into mammals. The World Organisation for Animal Health recorded more than 2,000 HPAI outbreaks across 64 countries between 2025 and 2026, resulting in the loss or culling of over 140 million birds.
Why this changes the risk calculation
The reservoir is now local
Wild seabirds carrying the virus are established along Australia's southern and western coastlines. Migratory bird pathways and proximity to wetlands, estuaries and coastal roosting sites are now a live exposure factor for any producer, not a theoretical one.
2. Industry is already responding.
Inghams, Australia's largest poultry producer, has locked down non-essential access to its Western Australian operations and sought a regional housing order to bring free-range flocks indoors. Producers in WA and SA in particular should expect this pattern to spread as detections continue.
3. Detection does not equal containment cost.
A single infected commercial shed can trigger movement restrictions, culling and quarantine well beyond that property, affecting neighbouring producers, hatcheries, transport contractors and processors who never had a sick bird on site.
4. Trade sensitivity is heightened.
Australia's clean status has long been a competitive advantage in export markets. The first confirmed poultry infection, even if swiftly contained, is likely to trigger a period of heightened scrutiny from trading partners and potential short-term restrictions while status is reassessed.
What producers should be doing now
Tighten biosecurity to outbreak-ready standard
Vehicle disinfection points, restricted shed access, dedicated PPE and strict control of movement between sites are no longer precautionary extras. Where feasible, consider housing orders or netting for free-range and outdoor-access flocks, particularly in WA, SA and coastal NSW.
2. Deter and monitor wild bird contact.
Covered feed and water sources, netting over outdoor ranges and active discouragement of wild waterfowl on or near production sites reduce the single biggest transmission pathway.
3. Report early, without exception.
Any unusual mortality, respiratory signs or drop in egg production should go straight to the Emergency Animal Disease Hotline (1800 675 888). Early detection is the difference between a contained incident and a prolonged one.
4. Review insurance now, not after a detection.
Livestock mortality and business interruption capacity for avian influenza contracts sharply once an outbreak reaches commercial poultry. Cover secured ahead of a confirmed infection is materially easier to place and typically better priced than cover sought during an active event.
5. Understand what government compensation does and does not cover.
Compensation schemes generally address the direct cost of culling and disposal. They do not typically extend to lost production, lost contracts, restocking delays, or the broader revenue interruption that follows a quarantine period. That gap is where a well-structured business interruption policy can do its work.
The people risk: managing stress in your own workforce
The financial and operational consequences of an outbreak are well understood. The impact on the people who have to manage it is less often discussed and deserves equal weight in planning.
Mass depopulation is traumatic work.
Overseas experience from major HPAI and FMD events consistently shows elevated rates of acute stress, sleep disturbance and longer-term psychological impact among the staff, contract cullers and vets directly involved in culling and disposal. This is not a fringe consideration. It is a predictable outcome of the work itself.
2. Owner-operators carry a compounding load.
Financial uncertainty while awaiting compensation, regulatory scrutiny, movement restrictions that cut off normal social contact, and public or media attention can pile on the practical demands of running an outbreak response. Family-run operations, in particular, have no separation between business and personal stress.
3. This now sits within your WHS duty of care.
Psychosocial hazards, including exposure to traumatic events and high job demand with low support, are explicitly covered under Australia's model WHS laws. An outbreak response plan that addresses biosecurity and logistics but not the psychosocial exposure of the people executing it is incomplete from a compliance standpoint, not just a well-being one.
4. Build workforce support into the response plan itself, not as an afterthought.
Practical measures can include rotating staff involved in culling and disposal to limit cumulative exposure, engaging EAP or trained counselling support ahead of and during the event rather than only after, keeping communication with staff clear and honest to reduce uncertainty-driven anxiety, and involving HR or WHS leads in outbreak planning alongside the biosecurity and insurance teams.
5. Check whether your cover reflects this.
Business Interruption cover can also do double duty here: removing financial uncertainty as a live variable during an active event reduces one of the biggest stressors for owner-operators.
The bottom line
Australia's poultry sector has a strong track record of containing and eradicating avian influenza outbreaks. What has changed is the nature of the threat. For the first time, H5N1 clade 2.3.4.4b has been detected in Australia's wild bird population, bringing a risk profile that is more persistent, more unpredictable and potentially more disruptive than previous HPAI incursions.
While there is currently no evidence of infection in commercial poultry, producers now face a different operating environment. The challenge is no longer simply preventing an outbreak on-site. It is understanding how a detection on a neighbouring property, within a nearby wild bird colony, or elsewhere in the supply chain could affect operations, workforce wellbeing, contractual obligations and financial performance.
The businesses best positioned to respond will likely be those that act before a commercial detection occurs. That means reviewing biosecurity measures, testing outbreak response plans, addressing workforce and psychosocial risks, and ensuring insurance and business continuity arrangements reflect the realities of a prolonged disruption.
In a landscape where the risk has changed, preparedness remains one or the most effective forms of protection.
Don't wait until capacity tightens
Following a confirmed commercial outbreak, insurance availability and underwriting appetite can change quickly. Now is the time to review your livestock mortality, business interruption and broader risk management arrangements.
Contact our Protein Practice team for more information, or review of your current insurance and risk management program.
The contents of this publication are provided for general information only. Lockton arranges the insurance and is not the insurer. While the content contributors have taken reasonable care in compiling the information presented, we do not warrant that the information is correct. The contents of this publication are not intended as a legal commentary or advice and should not be relied on in that way. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication.
