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There are many reasons why budgies bite.  For Buddie, it was typical female dominence, for others it can be out of fear or territorial aggression.  I do not want to promote any aggressive techniques to handle biting just in case someone misinterprets how to use it.  So below are little snipets of some good advice I have collected from other sites.
Janet's Budgie Guide

C. Biting

Some budgies will start to bite.  A bird may bite for many reasons, but I find that with budgies, the reason is
usually fear.  The solution in that case is to back off a bit and allow the bird to get more accustomed to you.
Feed it treats, talk to it, sing to it.

Other budgies seem to bite because they are being dominant.  I know, how can a little smidgeon of a bird try
to be dominant?  You'd be surprised.  Someone coined the term "budgitide" and I think it is a great word to
describe these little guys. I have found that a budgie who starts biting to boss you around can be handled by
repeatedly getting it to "step up" from finger to finger several times in a row. When they realize they will have
to be put through this routine every time they bite, they will usually stop.  These little guys are smarter than you
think.  Sometimes a quick puff of air in their face will also stop biting.  Putting the budgie back in its cage for
a few minutes may work with one that really likes to be with you.  NEVER yell at a bird or discipline it in any
physical way such as dropping it, shaking it roughly, spraying it directly with water or flicking your finger at its
beak.  This is just not called for and can be detrimental to your relationship with your bird.  Birds just don't
respond well at all to physical punishment and may even be encouraged to repeat behaviors when they are yelled
at.  This means: never yell "OUCH!" no matter how much it hurts; your budgie will be enjoying the show and
thinking about trying this again! "


The Budgie Place

"My once sweet adorable baby now bites, what caused it, and what can I do?

Baby budgies all go through a nibbling stage as they mature into adulthood. For some, the nibbling goes too far and becomes biting. By being patient with your bird, you can easily solve this problem. Do not react to the budgie bite with a scream, a slap, or any other type of aggressive behavior. This will just make the biting worse. Instead, gently shake the hand or finger that the budgie is standing on. Give him a mini-earthquake. This makes the budgie concentrate on resetting his footing and not on biting you. You can accompany this with a soft, firm NO, or Ah-Ah-Ah (actually the latter is budgie speak for Dont you dare! It works well for teaching them to leave your earrings alone too). Do this every time he goes to bite, and you will begin to see results within minutes. In a few weeks, this phase will be over and your sweet budgie will be back. Just be patient."

*NOTE, "earthquake" is meant to be interpretted as a small gentle side to side movement.  Not a vicious shake!*

Pet Center: Budgie Biting


Here are some of the reasons why birds bite:
1.  Defend territory
2.  Defend mate or perceived mate (can be owner, or toy also)
3   Fear
4.  Frustration, anger because warning signals were not heeded by owner.

Most budgies will try to bluff or warn you by jabbing at you with the beak to tell you to get away, before they actually bite.  But if you do not heed this, then next comes the bite or bites.

The beak can be formidable and cause severe pain, especially if it belongs to a budgie female, but it is also used to explore and check out things. Let's say you ask budgie to step up on your finger and budgie leans toward finger with its beak, don't think it is going to bite and jerk your hand away.  It may be wanting to test the solidity of this new perch to make sure it is safe first before stepping up on it.

Another hint:  Don't stick your fingers through the cage bars to pet your bird or to tease him or whatever because you are asking to get bitten this way.  Fingers coming through the cage bars is an invitation
to get bitten. Budgies also fear hands or things above their heads swooping down on them.  That really scares them.  Better approach:  direct from the front and bottom up is much better.  Talking in a smooth soft voice is also soothing.  Tell your budgie what you are doing before you actually do it.  When you come home, say hello to your budgie, when you leave say good bye, just as you would to any good friend.  If budgie chirps to you when you are in another room, answer him to let him know you are still
there and okay.

All these little things will help build a good relationship, so that you can live as a happy bird flock together.

Most budgies do not like to be petted or cuddled, and many otherwise affectionate birds will bite or become otherwise agitated when petted, I'm afraid. There are exceptions to the rule of course. In the 70 or so budgies that we've raised, I'd say about 1 in 10 enjoy being scratched. These birds are on the far end of the affectionate curve, while the other end is occupied by the mean, "I'll-never-be-tamed-so-don't-even-think-about-it" type. The vast majority are in between, good pets that will sit on your shoulder, enjoy your company and twitter to you and maybe even learn to talk well types.

Our advice, especially considering this is an adult bird, is to respect this space and not pet him. You can offer occasionally to, though, and perhaps with time and trust, he may allow you this pleasure. Don't feel bad if he never gets there, though. Again, it is not common for budgies to enjoy being petted.

As far as if he is biting you otherwise, try the "earthquake". If he is sitting on your finger and he tries to bite you anywhere, give your finger he is perching on a little twist or shake, just enough to throw him off balance a bit (NEVER jerk violently or throw him off your hand! This is completely unnecessary and will take away his trust in you!) The earthquake will usually take his mind completely off the bite. Be consistant with it and see if it makes a difference. If he is on your shoulder and bites your face, try keeping him on your finger more until he learns his new lesson and stops biting. Then you can allow him back on your shoulder when he decides to behave himself.

Our friend uses the technique of blowing a quick puff of air into their budgies' faces when they bite.  This has also worked very effectively for her as a harmless deterrent.

I had had a hen that was quite vicious (I was the 2nd owner). Blowing at her worked very well. I aimed at her nostrils when she'd latch on.