Ukraine annually produces about 50 mln t of grains and pulses. It means about the same quantity of straw as a by-product. It is primarily used for soil fertilization and for animal breeding. According to different agrarian practices different amounts of straw are used to fertilize soils. Modern animal husbandry use water-wash systems in cattle-sheds and mixed fodders to feed animals. It implies that lower straw amounts are applied for animal bedding and feeding as animal breeding practices improve. About 20 to 40% of straw can be annually used for further processing. We assess three options of alternative straw use. They are (1) heating (small-scale and district heating), (2) building, and (3) pellets production.