China's consumption of grain in 2012 is expected to increase 2.9% from last year, to 585 million metric tons, outpacing estimated output growth of 0.4%-0.6%, the Chinese Academy of Sciences said.

Grain output will likely rise to around 575 million tons, the academy said in a report published Tuesday on the China Economic Network, a portal operated by the state-run Economy Daily.

The forecast suggests that it is becoming more difficult for the world's most populous country to increase its domestic output after realizing its eighth consecutive year of grain production growth last year.

It also indicates China will likely continue to import grains to fill its supply-demand gap.

A rise in consumption of meat, eggs and milk in line with rising incomes will boost demand for feed grains, the academy said. Meanwhile, the rapid expansion of corn processors will drive demand for corn, "leading to a continued sharp increase in China's grain consumption," it said.

China's grain output rose 4.5% in 2011 to a record 571.21 million tons, according to government data.

-Zhoudong Shangguan contributed to this article; Dow Jones Newswires; (8610) 8400 7715; zhoudong.shangguan@dowjones.com

(END) Dow Jones Newswires

January 17, 2012 22:59 ET (03:59 GMT)