A former Zespri director, who has admitted illegally injecting his vines with the antibiotic streptomycin, failed in his bid for re-election to the board at yesterday's annual general meeting.

Raymond Sharp was defeated by Te Puke kiwifruit grower Nathan Flowerday, who won with 58.49 per cent of the votes.

Zespri chairman John Loughlin at the Zespri AGM at Baycourt.

Raymond's nomination was challenged by one speaker at the meeting who questioned the wisdom of Zespri accepting the nomination when the candidate had been linked to a food safety issue which could put Zespri's reputation at risk.

Zespri chairman John Loughlin says he didn't believe the board was at liberty to refuse any valid nomination and shareholders should judge for themselves who would best serve them when they cast their votes.

In March, Raymond resigned from the board, saying he had made an orchard management decision that he felt compromised his position on the board.

'Like so many growers in the industry the threat of Psa to my livelihood, and the realisation that the 17 years I have spent building my orchard may all amount to nothing, put me under great pressure.”

In his address to yesterday's meeting Raymond said he had much to offer the industry, including his five years of experience in the post-harvest sector, two years on the Zespri board and 17 years as a kiwifruit grower. In resigning when he did Raymond said he believed he had acted morally ``relative to my position''.

The unauthorized use of streptomycin by some growers cost the industry at least $1.5 million in an extensive process to test all export orchards to ensure no residues of the antibiotic were found in fruit.

The practice was a desperate attempt by some to save vines dying from the disease Psa V but it went against the protocols for the permitted use of the antibiotic and there was concern it could harm exports.

Zespri CEO Lain Jager told yesterday's meeting that Zespri carried out 9000 residue tests for the antibiotic.

'No positive residues were found on any orchard where the grower had either declared no use of streptomycin or the legal use of streptomycin.

'This result demonstrates the commitment of New Zealand kiwifruit growers to food safety and brand integrity in a time of enormous challenge for individual growers.”

The successful candidate, Nathan Flowerday is a graduate of Massey University.

Nathan worked as a rural manager for ASB Bank in the Bay of Plenty for seven years before spending two years with Merrill Lynch Investment Managers in London as a business analyst and management accountant. He now owns a kiwifruit orcharding business growing kiwifruit varieties in Te Puke.

In addition to his new role as Zespri director, Nathan holds directorships and consultant positions with Riverlock Orchard Pack & Cool Ltd, NZ Kiwifruit Growers Inc and Kiwifruit Vine Health. In June 2011, he became the first Associate Board Member to join the AGMARDT Board of Trustees.