Asda, the supermarket chain, has said that it remains "committed to sourcing lamb from Wales".
It follows news that the company has pulled its order from Welsh Country Foods, putting 350 jobs at risk.
Asda said the decision "was not taken lightly."
Following a strategic review of our lamb business we have taken the decision to serve notice on our supply relationship with Vion-owned Welsh Country Foods, Gaerwen Anglesey.
This decision was not taken lightly, however we feel it is an opportune time to review our lamb sourcing to meet the changing needs of our customers. We have built a strong relationship with Welsh lamb farmers and we remain committed to sourcing lamb from the country.
The leader of Anglesey Council will hold a meeting later today to discuss the possible closure of a meat processing plant on the island.
Around 350 jobs are at risk in Anglesey after Welsh Country Foods announced it has lost its key customer