The 50-year old chicken plant, now owned by 2 Sisters Group, at Llangefni on Anglesey is to face closure with around 730 jobs at risk.
The company has stated that the age of the plant would mean significant further investment would be required to bring it up to similar levels at its other factories. It has already spent £5 million on the facility to date.
In a statement the business said it hoped to employ some of the staff at the plant at other plants in Flintshire and Rogerstone, Newport.
The Farmers' Union of Wales, CEO, Guto Webb said: "We are naturally concerned about the impact this will have on our food supply chains as we are losing another food processing site in Wales.
“This will have consequences with regard to limiting food miles and sustainability and urgent action is required to address the lack of food processing facilities in Wales."
The impact of the closure was raised in Prime Minister's questions in Parliament yesterday. Virginia Crosbie, MP for Ynys Môn said: "I know the Prime Minister will share my concern at the news this morning that 730 people may lose their jobs at the 2 Sisters chicken factory in Llangefni, one of the largest employers on Ynys Môn."
In response the Prime Minister said: "I am very sorry to hear about the job losses my hon. Friend raises. My thoughts are with those affected and their families. I know how distressing that will be for them.
"I am pleased to say that the Department for Work and Pensions has procedures in place to support communities when situations like this arise.
"We will work very closely with her to do what we are doing everywhere across the country, which is providing good well-paid jobs for everyone, because that is the best way to build a happy and secure life."
A statement from the company said: "Clearly this will be extremely disappointing news for our Llangefni colleagues, and it is no reflection of their continuing hard work and commitment. However, we have a duty to remain competitive and protect our wider business on which many thousands of people depend."
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
