French President, Jacques Chirac, has urged people not to panic after the presence of the H5N1 strain of bird flu was confirmed in turkeys on a farm near Lyon.
It is the first case of the virus to be discovered in domestic poultry in the European Union. All previous infections were in wild birds.
Mr Chirac has reiterated that it is safe to eat cooked poultry after meeting farmers and veterinarians at an annual agriculture show in Paris. Poultry sales in France have already dropped by about 30%.
The French Ministry of Agriculture has said the tests were carried out after a number of turkeys died at the farm in southeast France.
Meanwhile, the Department of Health has ordered quantities of a human vaccine against virus. It is understood the order would allow almost 500,000 people to be vaccinated.
The Tánaiste and Minister for Health, Mary Harney, has said the vaccine would only be given in an emergency situation and would be administered on a voluntary basis.