A process of treating biomass such as sugar cane bagasse utilizing practically all components of the biomass to produce livestock feed and fuel biomass. Raw bagasse is ensiled for 50-60 days, dried, mechanically separated from soil particles and ground together with plant-derived lignocellulosic materials, pelletized feed material, agricultural processing residues, or by-products at a ratio of 2:1. The resultant ground material is used as cattle feed, feed additives, fuel pellets and for other purposes.