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."
More top news
Cardiff's Millennium Stadium issues "do's and don'ts" ahead of One Direction's gigs in the city in two week's time. Don't be caught out...
Welsh Assembly Members who are elected in 2016 will get a £64,000 basic wage. But the 18% rise is too much for some of them.
A largely cloudy afternoon with some drizzle in the north. Clearer spells developing during the evening and overnight.