Southeast Asia's animal feed production will continue to consistently grow by at least 5%-6% annually over the next few years, with an expanding aquaculture sector playing a crucial role due to higher Chinese imports of marine products.

The rising production of animal feed will likely push up imports of soybeans, soymeal and corn in Southeast Asia, supporting already-high prices.

"Regardless of the health of the overall economy, the prevalence of animal diseases and high prices of feed ingredients, production of animal feed is rising and will continue to do so," John Lindblom, the American Soybean Association's regional director for Southeast Asia, said on the sidelines of an agriculture conference.

Southeast Asia's animal feed production is projected to rise 4.5% to a record 5.22 million metric tons in the marketing year ending Sept. 30, he added.

The share of aquaculture feed in overall animal feed output in the region doubled in the previous decade to 12% and a large part of the seafood produced is being exported to China, Mr. Lindblom said.

China is the world's top meat consumer and its ability to produce freshwater aquaculture products is nearing a peak due to pollution-related issues and rising demand. Rising exports of live fish catch from Malaysia, the Philippines and Vietnam have also given a fillip to industrial aquaculture in Southeast Asia, he said.

Soymeal prices have surged in recent months but soymeal is still cheaper than fishmeal and is fast replacing it as a feed ingredient, he added.

Stronger local meat demand is also boosting animal feed output. In the past few years, per capita annual poultry consumption in Indonesia has nearly doubled to 7 kilograms and there is a lot of scope for growth, as the figure is 38 kg in neighboring Malaysia, he said.

Indonesia's animal feed output is projected to rise 9% this year to 1.12 million tons, Mr. Lindblom said.

Thailand has resumed poultry exports to Europe after stopping them a few years before due to to a bird flu outbreak. The country's animal feed output has risen 6% in 2012.

Philippine animal feed production has slowed this year due to a shake-up in the local hog industry, with many small producers going out of business, and increasing meat imports from Canada and Europe.

Write to Sameer C. Mohindru, sameer.mohindru@dowjones.com

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(END) Dow Jones Newswires

August 29, 2012 01:19 ET (05:19 GMT)