As crude oil reaches record highs of $110 a barrel, the connection between the cost of food and the rise in energy prices can no longer be ignored. In a recent statement, Josette Sheeran, executive director of the UN's World Food Program, said the global economy had created "a perfect storm for the world's hungry, caused by high oil and food prices and low food stocks." Sheeran continues, “Higher food prices will increase social unrest in a number of countries which are sensitive to inflationary pressures and are import-dependent. We will see a repeat of the riots we have already reported on the streets such as we have seen in Burkina Faso, Cameroon and Senegal."

Sheeran notes that food prices have been aggressively increasing to historic highs and cites four major drivers for this:

1. The rise in oil and energy prices which affect the entire value chain of food production from fertilizer to harvesting to storage and delivering and access to water;

2. The economic boom in nations such as India and China, creating increased demand for all commodities including food and forcing China, which was a major food exporter just a little more than one year ago, to now being an importer of food;

3. Increasingly harsh and frequent climatic shocks like hurricanes, floods and drought, have made for some bad harvests in particular regions like Australia and regions of Africa;

4. The shift to increased biofuel production that has diverted hundreds of millions of metric tons of agricultural output out of the food chain, and has caused food prices to be set at fuel price levels in many places, including, for example, palm oil in Africa which is now being priced out of household reach because it is being set at fuel prices as a biofuel addition.

On the energy front, Sheeran's claim is supported by recent reports coming from farms across the globe. Although farmers appear to enjoy record commodity prices, the recent spikes in the cost of fertilizer and fuel are eroding gains. Not only has the price of nitrogen fertilizer risen 113% since 2000, but also potash has risen from $225 a ton to nearly $500 a ton and increasingly scarce phosphate has gone from $312 to between $800 and $900 a ton this year. The ingredients of these fertilizers are often imported to the United States from other countries and these resources are mined and processed using markedly energy-intensive processes that consume diesel and natural gas.

In other news, the world’s largest poultry processor closed a U.S. processing plant-cutting 1, 100 jobs. The processor blames record feed prices and U.S. ethanol policy for the current industry-wide crisis. Even if you are a vegetarian, the implication of this news is still hard to hear, as it is illustrates the fact that agribusiness is designed to grow food in a way that creates high profit. Once the profit margin is challenged the corporate producers of food may simply quit the job of growing food.

These trends should be clear indicators to all of us to reduce consumption of non-renewable resources and begin to support those that are willing and capable of producing food, fuel, and organic fertilizer close to where we live. Click here to see if there is a CSA or farm in your area.