France has imposed a three-month ban on the production of foie gras due to a bird flu scare in the southwestern part of the country.
The ban will impact 18 départments, which account for more than 70% of the total foie gras production in France.
Until mid-August, firms in these regions are not allowed to have any poultry in their slaughterhouses.
Last November, the H5N1 strain of bird flu was identified at a chicken farm in Dordogne. This virus is considered to be fatal to birds.
Though it generally does not affect humans, the World Health Organization has found that it is lethal in around 60% of cases. Humans contract the virus when they come into close contact with an infected bird.
Poultry firms expect the loss due to the ban to reach an estimated €130m. The ministry of agriculture expects to compensate this amount.
Breeders federation Cifog spokesperson Marie Pierre Pé was quoted by Le Figaro as saying: "This interruption to our business will cause cashflow problems, additional wage costs linked to the temporary unemployment of around 4,000 workers, and fixed costs that will have to be paid despite us not having any income."
Firms are also expected to introduce new biosecurity measures. The government has to announce the details, but according to estimates, rolling out the new measures may cost €220m.
