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
Organisers say the move is due to "unprecedented demand".
The wintry snap we enjoyed last week now seems like a dim and distant memory,as we return to dull, damp and mild conditions!
Police boss says cyber criminals from Russia and Eastern Europe are attacking businesses across North Wales