Cig Mon, in Llangefni, has laid off all staff at the plant, which slaughtered 12,000 sheep a week for various wholesalers and retailers.
Owen G Owen, managing director of Cig Mon attributed the closure to the fact his company had paid too much for sheep when costs were going up. "The lamb market is very competitive and price orientated, so it is difficult to achieve margins, both in the domestic and export market. Around 65% of our business was in the export market."
Owen said that a receiver had not yet been appointed as the company was still considering the best options for its creditors.
"The loss of so many jobs in the food and food processing sector, means that we must work hard to diversify our economic base," North Wales Conservative AM Brynle Williams said. "Only two months ago, Cwmni Cig Arfon went into administration, and now Cig Môn has followed suit.
"I am very concerned for Cig Mon's employees and the loss of such a highly-skilled workforce is a blow both for Anglesey's economy and the meat processing industry as a whole."