Peat-containing granules possessing numerous beneficial properties can be prepared by a process involving gentle extrusion in which viscosified water is used in the extrudable composition. Advantageously, gentle extrusion allows a peat-containing extrudate to be formed in which the beneficial properties of the raw peat are well preserved. In preferred embodiments, gentle extrusion is achieved by using an extrusion die provided with a plurality of apertures and a relatively large open area which allow low extrusion pressures to be used.