Pelleting supplements will improve handling, storage, and feeding; therefore, it is most often used when making protein supplements, range cubes or cakes, and starter feeds. Pelleting will prevent the cattle from sorting through their feed.
Bulky feedstuffs, like hay and forages, are extremely difficult, if not impossible, to make good pellets. High oil and mineral formulations are also difficult to pellet. Some feed ingredients are hydroscopic, or likely to absorb water, which will compromise pellet quality. Urea is an example of a hydroscopic ingredient.
With the rise in energy costs, the cost of pelletting has risen to a point of minimal return on investments.
Pelleting high concentrate rations usually reduces cattle gain as well as feed intake. Feed efficiency may be improved slightly, but not enough to cover the cost of pelleting. In contrast, pelleting hay or high roughage rations improves both gain and feed conversion of cattle. However, pelleting enhances the feed value of poor quality forages to a greater degree than that of high quality ones. Pelleting also facilitates mechanical forage handling and shipping, while reducing feed wastage and wind loss.