With high rainfall in the area and steep farmland, a large amount of infrastructure was needed to capture the run-off, the council said.
"Unfortunately, a woefully inadequate storage facility was in place, meaning that discharges of dairy effluent into the environment were inevitable," the council's investigations manager Patrick Lynch said.
Despite warnings from the council, the company did not install adequate facilities to catch the run-off until after it was charged and four separate discharge incidents had been identified, the council said.
In his sentencing decision on Thursday, Judge David Kirkpatrick acknowledged the large cost of farm's conversion to intensive dairying and of building the infrastructure to capture the run-off.
"But it is not an acceptable approach to move some of that cost on to the environment by delaying the installation of a complete effluent disposal system," he said.
-NZN