The Agriculture Ministry is worried that chicken coops where bird flu has been identified could infect residents of nearby communities, the ministry reported Saturday.
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An outbreak of the bird flu was also found at a farm in the southern Golan Heights containing roughly 17,000 turkeys, The Jerusalem Post reported.
The ministry's veterinary services placed the farm under quarantine.
"We are in a war against a virus that may not be visible but is deadly to birds and can be contagious to humans as well," said Agriculture Minister Oded Forer.
"Although cases of infection in humans are rare, they are extremely fatal, with about 50% mortality in humans who have been infected with the disease," Forer said.
In addition to the risk of the bird flu being transmitted to humans, the country could also face a major egg shortage as infected laying hens are destroyed.
Forer has issued instructions to prevent the outbreak from spreading, and to lift quotas on the import of eggs.
On Thursday, the Israel Nature and Parks Authority reported that one in five wild cranes living or migrating through Israel are infected with bird flu.
So far, about 100 birds have died in the outbreak, according to The Jerusalem Post. Authorities expect to remove 25 to 30 tons of carcasses, The Times of Israel reported.
Some 100,000 cranes visit northern Israel's Hula Valley annually. Many stay in the country until early March, then they fly north to nest.
Inspectors are sweeping the Hula Valley for evidence of the virus and searching water bodies in neighboring valleys.
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