The Schmallenberg virus is carried by insects and was first detected in Germany 18 months ago.
Sheep farmers are on "tenterhooks" as lambing season builds because of the Schmallenberg virus, a Herefordshire farmer says.
Schmallenberg has so far been seen in sheep, cattle and goats, and is thought to be carried by midges.
Schmallenberg virus (SBV) causes fever, diarrhoea and loss of milk production in adult cattle, although the animals do recover.
BBC: Schmallenberg virus: Scottish farmers put on high alert
The National Farmers Union of Scotland (NFUS) said a ram transported from Shropshire had tested positive for Schmallenberg virus (SBV).
The Schmallenberg virus has been reported in eastern England since January 2012.
BBC: Wroxham Barns' supply of lambs hit by Schmallenberg virus
Schmallenberg is still considered a low-impact disease and farmers are not required to notify authorities about it, although they are advised to do so.
The first case of Schmallenberg disease in mainland Scotland has been confirmed on a Dumfriesshire farm after birth defects were found in a calf.
The Schmallenberg virus has been confirmed at 147 farms - 58 in Cornwall and 89 in Devon - according to figures from the environment ministry Defra.
"Do not assume these are cases of Schmallenberg virus infection as other diseases can cause birth defects in lambs and calves and it is important to know which you are dealing with, " he said.
Colin Evans, who farms at Pant y Goitre farm in the Usk Valley in Monmouthshire, said between 20 and 25 lambs born to his 800 ewes appeared to have been affected by Schmallenberg - up to 5% of the flock.
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