<p>The liberalization of the cashew-industry in Guinea Bissau, Africa’s second-biggest grower, has failed and caused smuggling to neighboring countries, the head of the farmers organization said.</p> <p>The government didn’t set a minimum price and the nuts are now trading for between 125 CFA francs ($0.25) and 150 CFA francs per kilogram, down from as much as 400 francs a year ago, Mama Samba Embalo, president of the National Farmers Union, said in an interview yesterday.</p> <p>Many farmers smuggle their crop to neighboring Senegal where prices are between 300 and 350 CFA francs, he said.</p> <p>“If the government cannot create local conditions for farmers to sell their cashew nuts, I do not see the reason why the farmers should be denied the choice of selling their cashew in good prices beyond the borders,” he said. “It’s a tough stance.”</p> <p>Exports of the nuts fell to 125,000 metric tons in 2012 from 170,000 the year earlier.</p>