Will this logger work for pasteurization in a tunnel or chamber in the food(dairy) industry? Or is there a different model that would work better?

While this logger “could” be used for that application it’s really not designed for it.  While it can be submerged it’s not designed for continued use in that environment.

We would suggest this logger from Star-Oddi as it is designed for your application - https://microdaq.com/data-loggers/pasteurization.php