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Grass 2 slowly spawns trees. If you place a town into a forest the people will turn the trees into Grass 2. So trees are food. If there are not enough trees to sustain the population people will starve.
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It's quite nice, but I think it needs some more refining. If you let it run without any help then towns are founded too fast to allow the population to grow rapidly which ends up with population stagnation. For me this happens ubiquitously at 8 towns, where the population drops from the mid 20s to the mid teens and gets stuck there. Lowering the rate of town creation (or increasing population growth) would certainly help here.
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Love this game! There is one problem though , I find my self pressing space a lot. You should make the text large in the help menu and have an option to keep the help menu up. Apart from that... Good job! :D
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Some suggestions: fewer random meteor strikes, villagers will rebuild damaged roads, meteor strikes start fires, water travel.
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The concept is good, you have to be able to Zoom directly in your town, see people and everything, it reminds me of black and white, you could add LOTS of possibilities into your game, a LOT!!!