The recent increase in food prices strengthened the perception
that the global food system is inextricably tied to the price of
oil. There is no single cause for the food price increases, but
there is agreement that rising energy prices were a contributing
factor. Energy and food systems are linked in two distinctive
ways: the agricultural sector is an energy consumer and it is
also an energy producer through bioenergy. Agriculture has
become increasingly reliant on chemical fertilizers derived from
fossil fuels, natural gas and diesel-powered machinery. Food
storage, processing and distribution are also often energy-
intensive activities. Higher energy costs, therefore, have a
direct and strong impact on agricultural production costs and
food prices. Economic research on energy and food security The
economic research and policy work at FAO analyses overall
economic development, poverty reduction and food security from a
number of thematic perspectives, including direct and indirect
impacts of energy markets.