Thomas Foods is under pressure to compensate farmers after using a faulty probe to measure fat depth in cattle carcasses.
According to The Weekly Times, the faulty probe was used at the company's Murray Bridge facility in South Australia.
The fat depth is measured using the probe to determine the amount of saleable meat on a carcass, with those with high or low fat depths penalised.
According to the report, Thomas Foods said it had switched to manual verification after discovering the fault, and had informed the industry-owned watchdog AusMeat, as well as its wholesale customer.
The company also says it has investigated the matter and strongly rejects any assertions made against it.
