Severnside Provisions Ltd employs 17 people, and supplies meat to South and South West Wales, and the South West of England, from its base in Newport.
Its operations continue in the run up to Christmas.
Managing Director Anthony O'Sullivan said: "We are having people cancelling orders. I want to reassure people - all of our product is 100 per cent assured. That seized turkey has never been wholesaled."
"We do wholesale turkey, but not process it. It was just a licensing issue. The seized turkey was stored in a part of the building not covered by our licence."
"We had a large batch of turkey condemned and taken away. None of this turkey has made it into the food chain."
"We are looking into how it happened and have already taken steps to make sure it does not happen again."
The Newport company criticised by the Food Standards Agency over turkey butterflies said to have been processed in 'unapproved premises' has told ITV News that none of the turkey product has made it into the food chain, and the issue was simply over storing it in the wrong part of the building.
Severnside Provisions Ltd said it has not processed any turkey, it just wholesales the product.
Managing Director Anthony O'Sullivan said: "It was just a licensing issue. The turkey was stored in a part of the building not covered by our licence."
"None of this turkey has made it into the food chain. There was never any danger to the public."
If you are concerned about a turkey product you have bought, here's the advice from the Food Standards Agency:
- Only turkey butterflies (boneless breast of turkey) affected
- Products have been distributed to retailers in South and Mid Wales, South West and South Central England
- Customers should ask the shop where they bought the product to confirm whether it was processed by Severnside Provisions Ltd
- If so, product should not be eaten
The Food Standards Agency has said that the plant that processed the turkey butterflies "is approved for processing bacon".
But it said the firm had been "processing turkeys in conditions that do not meet the required hygiene standards for food production".
ITV News could not immediately reach Severnside Provisions Ltd for comment.
Customers have been advised not to eat a batch of turkey butterflies that were produced in "unapproved premises", the food safety watchdog has warned.
Turkey meat was processed by Severnside Provisions Ltd in Newport, South Wales "in conditions that do not meet the required hygiene standards for food production", the Food Standards Agency (FSA) said.
An FSA spokesman said there was no "specific risk to public health from consuming this product" but customers who bought a turkey butterfly processed by the firm are advised not to eat it.
The Welsh meat industry has reacted angrily to a new campaign by the Food Standards Agency that puts lamb in the toilet.
A poster depicting lamb chops at the bottom of a urinal advises people to check the hygiene rating of restaurants - but critics say it's a marketing disaster for Welsh lamb, as Lorna Prichard reports.
The National Sheep Association has also criticised the inclusion of lamb in the FSA's campaign.
Welsh farmers have criticised a campaign by the Food Standards Agency which shows a lamb chop placed in the bottom of a urinal.
"We are appalled that lamb has been singled out to portray such a negative and extreme message", Farmers' Union of Wales president Emyr Jones said.
The union has demanded that the FSA removes the images from all public places immediately.