A non-commercial site in Langley, B.C., that raises ducks, chickens, geese and turkeys has been infected with the virus.
The Canadian Food Inspection Agency says 85 birds on the farm have either died or will be destroyed.
Eleven commercial sites in the Fraser Valley have already been infected with the virus and nearly 250,000 birds are dead or will be euthanized.
The virus is related to a deadly strain that has spread through Asia and is now affecting North American poultry for the first time.
Health Canada has said there is no evidence to suggest the flu can be transmitted to humans through the consumption of poultry as long as it is handled and cooked properly.