The method of making a pellet comprising wood pulp fiber and thermoplastic polymer, comprising extruding an extrudate comprising 10 to 50 weight % wood pulp fiber and 45 to 85 weight % thermoplastic polymer through a die, cutting a pellet from the extrudate, removing the pellet from the extrudate with water having a temperature less than the extrudate, filtering the pellet from the water. In one embodiment the wood pulp fiber in the pellet has a moisture content of 1% or less. In one embodiment the wood fiber does not swell.