Affco defended the charge under the Health and Safety in Employment Act, saying the accident was Mr Matahiki's fault. Instead, Judge Rollo found: "There were critical company failures."
Judge Rollo said he was satisfied the company took health and safety obligations seriously and worked to avoid harm to staff and others on the plant.
But in this case, he found that Mr Matahiki's head had become caught between the hook and a redundant frame which served no purpose in the area on which he was working, as the scanner previously attached had been removed,
"The prong has pushed his head forward, it seems to me, and the right side of his head must have immediately come into 'crush' contact with the scanner frame."
Judge Rollo said it was not "negligent employee responsibility" but failure by Affco for allowing the chain carrying the hook to be moving through the cleaning process, contrary to its own policies.
While Mr Matahiki told the court he should not have been standing where he was when caught by the hook, there was no company guidance against standing where he was. Evidence from the cleaner's health and safety representative was that it was necessary to stand where Mr Matahiki had been injured to clean the "head-off machine".
Judge Rollo said he was satisfied that logically there was a regular need for a cleaner to access the area.
He said the risk of constantly moving chains carrying the hooks "should have been obvious to Affco at a much earlier stage" and the company was required by law to identify hazards. That onus included identifying that the scanner frame, without the scanner, posed a risk.
New Zealand Meat Workers and Related Trades Union organiser Darien Fenton said she was pleased with the judge's finding over an incident which had been "traumatic" for Mr Matahiki.
Affco spokesman Andy Leonard said it was the first accident on the chain processor after years of operation, and it was "extremely unfortunate and taken seriously by the company".