China's wheat output is expected to see its first drop in 12 years, a report from the Ministry of Agriculture said on Friday.

Wheat output is forecast to reach 130.1 million tonnes in 2016, down 100,000 tonnes year on year, the first decline since 2004, according to the ministry's agricultural outlook report (2016-2025).

The report also predicts that the wheat cultivation area will shrink by 300,000 mu (20,000 hectares) year on year, dropping to 361.8 million mu this year.

The report attributed the output decline to drought in northwestern areas, the El Nino phenomenon and a reduction in wheat cultivation in northern China.

By 2020, the wheat output will reach 131.9 million tonnes, up 1.7 million tonnes from 2015, while the wheat-growing area will hit 360.3 million mu, down 1.8 million mu from 2015.

Meanwhile, China's wheat consumption will continue to rise and is expected to hit 126.3 million tonnes by 2020, said the report.