We report the propagation of high-intensity sound beams in a sonic crystal, under self-collimation or reduceddivergence conditions. The medium is a fluid with elastic quadratic nonlinearity, where the dominating nonlinear effect is harmonic generation. The conditions for the efficient generation of narrow, nondiverging beam of second harmonic are discussed. Numerical simulations are in agreement with the analytical predictions made, based on the linear dispersion characteristics in modulated media and the nonlinear interaction in a quadratic medium under phase matching conditions.