Bird flu is threatening devastation at the heart of the British poultry industry. As government vets raced to contain the virus, the grave potential of the outbreak became clear. It emerged that there are five million turkeys, chickens, ducks and geese within a six-mile radius of the farm at the centre of the scare, on the border between Suffolk and Norfolk. There are 25million in the wider 'at risk' zone.

The slaughter starts: Turkey carcasses are carried away by a JCB at Redgrove in Suffolk, the centre of Britain's poultry industry. Did wildfowl bring virus from Europe? The two counties produce up to a third of home-produced turkeys. And there are still fears the deadly H5N1 strain of the disease is being spread by wild birds.

The outbreak has already resulted in the slaughter of 6,000 turkeys, geese and chicken at the farm, operated by Gressingham Foods. Further culls are expected in the next few days because workers are believed to have travelled to other farms owned by the company. It is believed the birds are being gassed. There are also concerns that the virus has been carried to as many as 90 other farms within the six-mile radius by wild birds and ducks.

Scientists working for the food and farming department Defra confirmed yesterday that the bird flu is the H5N1 version of the virus, which is highly contagious. Food and Farming Secretary Hilary Benn admitted there could be further outbreaks in the next few days. The Conservatives accused the Government of putting farms and food supplies at risk by starving local authorities of the money needed to contain animal disease outbreaks.

They said only £8.5million of a promised £9.7million had been given to councils - a funding cut of 12 per cent. Bird flu is not an immediate threat to human health because it can only be transferred to humans by prolonged contact with infected birds. The virus has killed more than 300 around the globe, mainly people living and working alongside chickens in the Far East.

The real danger is that the virus will, at some point, mutate and combine with the human form of flu to create a global epidemic that could kill hundreds of thousands of people. The Food Standards Agency yesterday issued a public health bulletin insisting that there is no risk of contracting bird flu from eating poultry. It said: 'Properly cooked poultry and poultry products, including eggs, are safe to eat. The science shows that the virus isn't contracted by eating food but by close contact with infected birds.'

Despite the reassurances, turkey farmers will be worried that consumers could turn against their product and choose an alternative meat for Christmas. The discovery of bird flu at a Bernard Matthews plant in Suffolk in February led to a 30 per cent slump in sales for the company, which was forced to lay off 300 staff. Retail industry expert Stuart Whitwell, of Intangible Business, said: 'This is a very frightening time for turkey farmers. If the virus spreads that could have devastating consequences for sales.

'On the one hand, you could see a shortage of fresh birds. On the other side of the coin the reputation of turkey meat becomes tainted. Either way, sales and income will suffer.' Even before bird flu, industry experts were warning of potential shortages and high prices this year because farmers have been hit with a big increase in the cost of feed. It was suggested some organic birds could fetch more than £100. Farmers throughout Norfolk and Suffolk have been ordered not to move their turkeys or other poultry. Free-range and organic flocks have been brought into sheds.

The flock at the centre of the outbreak is free-range. It is understood to have been particularly vulnerable as the premises involved, Redgrave Park Farm, is next to a wildfowl lake. The British Poultry Council said turkey and other poultry producers are facing a very stressful time. Spokesman Jeremy Blackburn said: 'East Anglia is one of the major areas for poultry. It would be a very grave situation if bird flu was found to be circulating.'

Mr Blackburn said the area hit by bird flu is very important in producing the nation's Christmas turkeys. We eat around 10million over the festive period, 'Norfolk and Suffolk supply around 30 per cent of turkeys in the UK. They will supply up to two million fresh birds for the Christmas market,' he said. He was hopeful consumers would support farmers. 'There is a certain amount of caution and there might be a slight dip in sales, but the British consumer is robust,' he said.

'There is a groundswell of sympathy from the country for what farmers have gone through, ranging from foot and mouth disease to bluetongue and flooding.' The Food and Farming Secretary said it is too soon to speculate about the cause. But Mr Benn admitted there is a risk the virus is spreading. He told the Commons: 'There also remains the chance that there may be further undisclosed disease in this area which has a high density of poultry.' Deputy chief vet Fred Landeg said the source could be wild birds or ducks on a lake neighbouring the farm. But other factors are being investigated.

'We have taken expert advice from local ornithologists in the area and there are a number of waterfowl of different species on this lake. 'As the turkeys and ducks and geese were free-range, one cannot exclude the possibility of mingling in certain circumstances.' The cull could take several days because facilities on the farm are so rudimentary. It has only one tap and Defra has been forced to bring in showers and mobile decontamination units to protect people carrying out the cull.

Only around half of turkeys eaten at Christmas are homeproduced. While East Anglia is responsible for the lion's share, Staffordshire and Lincolnshire also contribute a sizeable portion. Imported turkeys are frozen and mainly come from South America, South East Asia, Eastern Europe and the rest of the EU.