Gun shots at Fonterra

Bullet holes were discovered in a tank and shed at Fonterra's Kauri Dairy factory. Photo / Michael Cunningham

Shots fired into a shed and tank at Fonterra's dairy factory in Northland by a man allegedly using a military style firearm potentially put lives in danger, police say.

The bullet holes were reported about 10.20am on Monday and members of the public reported hearing shots fired from somewhere outside the factory grounds about half an hour later. Police went to the factory site 12km north of Whangarei and that lead them to the arrest of a Kauri man.

A 52 year old man appeared in Whangarei District Court on Tuesday on one charge of unlawful possession of a restricted weapon, being an SKS 7.62/39 calibre firearm.

The charge carries a maximum penalty of three years in prison or a $4000 fine.

He entered no plea to the charge when he appeared before a Justice of the Peace.

He will re-appear in court today when it is likely he will face more charges and apply for bail.

Northland police spokeswoman Sarah Kennett said the incident had the potential to put lives in danger.

Fonterra confirmed the man had no direct connection to Fonterra.

Fonterra's Managing Director of people, culture and strategy, Maury Leyland said the co-operative's priority was the safety and welfare of its staff and they were working with police to ensure there was no risk to staff.

"I want to personally reassure our staff, their families and our farmers that we are doing everything in our power to ensure the safety of our staff," Ms Leyland said.

"We will take immediate steps if we feel our people's safety is compromised in any way -- including shutting the site entirely if required."