Before 2004 oil (energy) prices were rising steadily as global food prices were falling – they were not directly linked. However, in 2007, rapidly rising demand for oil pushed up the costs of food production – so the prices of both rose together worldwide and a direct linkage was established. This linkage was enhanced by changes in food consumption and land-use patterns around the world, as rising oil prices encouraged the switch of agricultural land from cereal production to growing biofuel crops.
Source: Ecowin