We use pine wood-chips for nesting material in our rabbits nest-boxes, for absorbancy and warmth. The does will get in the box, dig it around, chew some into smaller pieces, and pull their hair to add to it to make a nice soft nest for their babies. So what do we do with it when the nest box comes out?
We have found a very good way to use it "twice". We mulched around our blueberry bushes and the newly planted grapevines we added this year. We have used it in the raspberry bed and around other flowers and bushes. If you don't mind it not being the commercial mulch color, it works just as well...... and saves money in the long run.