NFU Cymru says news that the Welsh Country Foods meat processing plant on Anglesey is to close is a "body blow to lamb producers across Wales and to employment on the island of Anglesey and Gwynedd."
It said that it "means the last major slaughter facility in the north of Wales will close and lead to a large drop in overall slaughter capacity in Wales and a loss of levy income."
The loss of one of the biggest slaughterhouses in Wales bodes badly for an industry already suffering from low prices and increased costs.
Competition for lambs is important as is the mix of large medium and small abattoirs in Wales to meet various markets for sheep meat in Wales the UK and Europe.
Loss of Gaerwen abattoir capacity will significantly affect this balance and ability to supply various markets with a quality Welsh product.
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