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."
It is suspected that 12 tonnes of turkey butterflies, processed by Severnside Provisions Ltd at premises in Newport, South Wales were supplied to independent butchers and catering outlets throughout South and Mid Wales, South West and south-central England.
Eight tonnes have so far been retained and prevented from entering the food chain after action by Newport City Council.
There is no evidence at present of any specific risk to public health from consuming this product. However, it is illegal to supply meat from unapproved premises.
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.
It is plain idiocy that the repercussions of such an advertisement were not spotted by the FSA. It's little wonder that criminals were able to pass off horsemeat as beef under the FSA's noses if they were too busy dreaming up inflammatory and misleading messages like this.
If premises have standards of hygiene which are akin to food being served in urinals then the FSA should deal with them.
Launching a publically-funded campaign like this and associating a top quality product with standards of hygiene which should result in premises being closed down is absolute madness and a disgrace.
– Emyr Jones, President of the Farmers' Union of Wales
The National Sheep Association has also criticised the inclusion of lamb in the FSA's campaign.