Feed pelletization improves performance by increasing animal feed conversion. Starch present in ingredients gets gelatinized by the pelletization process. It prevents segregation of microingredients, thereby, reducing microbial load. It also reduces various costs: cost of storage, cost of transportation (by increasing the bulk density) and cost of reprocessing (by minimizing the fine powder in the food).
The use of binders in feed manufacturing is a common practice especially in foods that require high stability in water (like shrimp and fish).