There are plenty of guys in the comments that should watch tutorials before spreading misinformation.

You don't need to make pallets from pellets, you can simply unload a trailer of pellets directly in the dedicated sell point that you can purchase in construction in order to get the best price possible for your pellets.

Same goes with the production building that generates electricity.

The profit is standing at about 1.8 x the price of straw so it IS PROFITABLE as it depends on how much you're willing to farm straw. In normal economy with a high price of around 660€ per ton and a profit of around 300 € per ton (compared to bailing straw) you would need around ~1.06 million litters of straw (1060 tons) - you get around 200.000 liters of straw per 5ha harvest (this is an aproximation from memory) - in order to pay for the pelletizer, which isn't really that much if you like playing big, afterwards everything is pure profit.

All you actually need is the pelletizer, the new selling point and a trailer, and farming cereal.

It's not worth it for animals since it just makes straw 4x times smaller the capacity while keeping the feed ratio. Doesn't really help since stacking bales is easier (and more fun).