THE worst fears of Oxfordshire poultry breeders have been confirmed with news that the dead swan found in Scotland was carrying the deadly H5N1 bird flu virus.

A three-mile exclusion zone has been set around the scene in Fife, Scotland, where the bird was found, to contain the situation.

But poultry seller Michael Hodgkins, of New Barn Farm, in Longworth, Abingdon, fears panic could kill his business.

He said: "Sales had dropped off by 80 per cent after Christmas. We had also let the man who worked for us go and reduced our intake of young birds by nearly half.

"But in the past few weeks, things had started to pick up and we had begun to see the light at the end of the tunnel.

"So to see on the news that the swan in Scotland had the H5N1 strain was shocking."

Mr Hodgkins, 47, has reared poultry for most of his life, and sells young free-range chickens to farm shops and individuals in four counties.

His father Stan started the business 50 years ago and over the years it has weathered the salmonella scare of 1988 and the foot-and-mouth outbreak in 2001.

He added: "I am not worried about my own flocks getting bird flu. I know that's extremely unlikely.

"But what will affect us, and could actually destroy our business, is if the public panics and the people we sell chickens to are ordered to take them inside.

"The people we sell to have their birds roaming and just have a small shed, big enough for them to sleep in.

"If they are ordered to take them inside, they will have nowhere to put them and our sales would disappear completely.

"And if the public stops buying eggs and poultry, that could spell the end too.

"As things stand, we are still very much in the dark with what happens next," he added.

"We've just got to keep the faith and hope the situation is contained and people keep calm.

But this news does not make our lives any easier."

Oxfordshire's senior enforcement officer in animal health and welfare, Mike Gregson, said poultry farmers should be reviewing their contingency plans in light of the findings of the Scotland.

"An order for bird keepers to take their stocks indoors would have huge implications for them, and practically it will be very difficult, but they should be looking at their plans for this now," he said.

"Meanwhile, all professional advice is that there is no risk for eating poultry or eggs, provided they are cooked correctly.

"And we would also ask everyone to report any unusual die-off among birds to the helpline 08459 335577."