Abstract: A system for automatically producing pellets, and more particularly feed pellets from a milled material. A mixture of milled material of a selected composition is fed to a pellet producing means. The moisture content of the material as it enters the pellet producing means is automatically controlled within prescribed limits as is the feed rate of the material into the producing means, such that there can be no increase in the feed rate unless prescribed moisture conditions are satisfied. Further control means control the feed rate of the material in accordance with prescribed load conditions on the producing means and establish an automatic sequencing of various controlled parameters when an overload condition occurs to prevent damage to the system, relieve the overload condition, and restart the system.Once the system is activated, operation is completely automatic to establish optimum conditions for maximum productivity, pellet quality, and system life.