A pie company wants to close a factory and invest £11m in a central plant in Nottingham to be able to continue producing Melton Mowbray pork pies.
The move, by Pork Farms, follows a strategic review of its business which could lead to a loss of 400 jobs.
The site in Trowbridge, Wiltshire, could be closed by 2008 with some employees redeployed to Shaftsbury.
A union said the move was caused by EU laws limiting use of the brand to goods made within 40 miles of Melton Mowbray.
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This is a devastating blow to Trowbridge
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Mike Godley, general manager at Trowbridge said: "We understand that this proposal is likely to cause concern for those affected and their families.
"We would like to thank employees and trade unions for their co-operation and continued support at this time."
A company spokesman said: "If we do have to make people redundant, we anticipate providing outplacement support in finding new employment, or training."
Hugh Kirkbride, regional officer for the union Unite, said: "This is a devastating blow to Trowbridge.
"There is no escaping the damage which the European Union has done by ruling that Melton Mowbray pork pies can only be produced within 40 miles of that town."
In a statement, Westbury MP Dr Andrew Murrison said: "I am deeply concerned about the announcement and will be talking to the company and to the trade unions to see what can be achieved in the interest of the 400 employees concerned."