Bernard Matthews' turkey sales plummeted in the wake of a bird flu outbreak at its Suffolk plant but retailers are reporting a rise in other poultry sales.

Industry sources said the producer's sales were down 25-50% earlier this week. Some stocks of Bernard Matthews meat were not being distributed pending the findings of an FSA investigation and processing at its Holton plant was also suspended until this week.

Weekend newspapers gave out confusing messages, which hit Bernard Matthews' sales, said Andrew Opie, BRC food policy director. "H5N1 is an animal disease and measures have been taken to stop the spread of an animal disease. Talk of product recalls means there are mixed messages."

Retailers reported strong consumer demand for other poultry products in spite of alarmist reports. Sainsbury's and Morrisons reported a 10% dip in chicken and turkey sales and Morrisons offered to buy back any returned Bernard Matthews products.

But Somerfield and Asda said the outbreak had not dented their sales and that no discounting had been necessary.

In fact, Asda said its poultry sales were up 4% in the past two weeks compared with 2006, with demand for turkey and Bernard Matthews products holding steady. The rise may be the result of a two-for-£5 offer Asda has been running on its whole British chickens and its roll-back on the price of turkey breast.

Somerfield reported a slight dip in poultry sales when H5N1 was confirmed on 3 February, but sales are back up to budget. Tesco refused to comment, but Bernard Matthews pointed to the FSA's decision not to recall any turkey products as a sign the worst had past. Processing at the Holton site has restarted.

"Initial reaction shows consumers understand this outbreak has been contained," said a spokesman for the producer. The company is in talks with retailers about a promotion to rebuild consumer confidence in the brand.

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