New Zealand has reached agreement with Australia to restart the export of some chicken products there after it was shut down due to the bird flu outbreak in Otago.

Agriculture Minister Todd McClay revealed the breakthrough when addressing a select committee this morning during Parliament's scrutiny week.

New Zealand's $200m poultry exports were put on hold after the highly pathogenic H7N6 virus was detected at Mainland Poultry's Hillgrove Farm.

Trade officials have been working on resuming trade as quickly as possible – and McClay said they've come to an agreement with Australia.

He said Australia, like New Zealand, was taking a risk-based approach.

Test results from a small, free range chicken farm near Dunedin have not detected the bird flu strain at the centre of an outbreak at another farm.

The farm had reported bird deaths, after the H7N6 virus was found at a Mainland Poultry farm.

But Biosecurity NZ said they now believed the problems on the Dunedin farm were caused by an existing New Zealand disease among the birds.

It said the negative results today were welcome news for the farmer.

"The results will be welcome news for the farmer and we would like to acknowledge their efforts in reporting the deaths and working with our staff, " said Biosecurity New Zealand's deputy director-general Stuart Anderson.

Meanwhile further testing at five chicken farms operated by Mainland Poultry in the region also all came up negative.

"Steady progress is being made to depopulate chickens in two sheds at the Hillgrove egg farm and dispose of them safely at a secure landfill designed for such purposes.

"Our staff are visiting landowners that own poultry, including commercial and back yard, to provide helpful information on best biosecurity practices, signs of HPAI to look out for, and how to report these to MPI's pest and disease hotline," Anderson said.

He was confident they were on the path to stamping out H7N6.

rnz.co.nz