A third shed at an Otago chicken farm has tested positive for bird flu, so another 80,000 of the farm's birds will need to be killed.
An outbreak of the highly pathogenic H7N6 virus in two sheds of the Hillgrove farm managed by Mainland Poultry has led to the cull of about 80,000 hens.
Biosecurity NZ says a third shed has now tested positive, and its 40,000 chickens will also be culled.
A fourth shed is yet to test positive, but Biosecurity NZ is planning to cull those 40,000 birds too because they were highly likely to be infected, bringing the total number of birds killed to 160,000.
Biosecurity NZ said there was still no sign of the virus at Mainland Poultry's five other farms, or anywhere else in the country.
"The farm remains under strict biosecurity lockdown," said Dr Mary van Andel, the Ministry for Primary Industries' (MPI) chief veterinary officer.
"There have been no reports of sick poultry elsewhere in the country. There remains no risk to eggs and chicken supply in New Zealand given the size of the national flock, nor any issues for food safety and human health."
A second farm south of Dunedin was also under investigation after some chickens were found sick and dying, but test results were negative for bird flu.
MPI earlier this week said it was confident it had the resources to handle a wider bird flu outbreak.
All poultry exports were on hold until the country was free of the disease.
The version of the virus found in New Zealand is different to the H5N1 strain which has infected people overseas.
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