A system for forming and packaging a bulk of loose particulate material. The system utilizes a compression tower for initial deposit of the loose particulate material therein with the bottom floor of said tower being presented by a belt of a conveyor system. A ram within the tower compresses the loose material into a bulk form atop the conveyor belt. Subsequent to compression, the conveyor system is vertically displaced so that the formed material bulk can be conveyed to a horizontally adjacent conveyor for downstream conveyance to a packaging station having upper and lower conveyor assemblies. The material bulk is then recompressed and conveyed to a space formed between upper and lower assemblies. A sheet of packaging material spans portions of upper and lower conveyor assemblies such that the material bulk is directed through the sheet and enveloped thereby for transfer to downstream upper and lower conveyor assemblies to maintain compression thereon. The downstream conveyor assemblies are longitudinally shiftable to vary the gap between the conveyor assemblies and minimize bulk decompression during transfer. Packaging material which envelops the bulk material is cut and thermally sealed, leaving the packaging sheet spanning the conveyor assemblies. The system diminishes the dislodgment of the particulate material from the bulk subsequent to its formation.