He said the nip point was easily identifiable as a hazard, and safety measures to make it safe would have been inexpensive.
In failing to act the company had shown a "significant degree of departure from industry standards", he said.
Lean Meats pleaded guilty to the charge and defence counsel David Jackson said the company had already made remedial safety changes as a result of the incident.
The company had also shown "genuine concern" for the victim, he said.
"This incident has been taken very seriously by the company."
He denied that the point where Miss Steel had been injured had been an obvious nip point.
However, Judge Maze said the company's own hazard register had specifically identified conveyors as a hazard but the company had not taken practicable steps to ensure the victim's safety.
"This accident could readily have been avoided. I conclude the risk here was wholly foreseeable."
She also noted that the company had been found culpable in a "remarkably similar" incident in 2009, and added that if fellow workers had not acted quickly to free Miss Steel, the consequences to her could have been "very serious indeed".