Soybeans are primarily processed for their oil, which leads to the generation of two primary by-products - soybean meal and soybean hulls. Soybean hulls are actually the skin of the soybean which comes off during processing. These soyhulls are quite small in size and are not very dense. Therefore, many soyhulls are pelleted to increase ease of handling and bulk density. With respect to nutritional value, the loose and pelleted hulls are equal.