More than $350,000 has been put towards recycling waste wood in the Bay of Plenty.
Untreated wood waste would be recycled to make animal bedding for the dairy industry, garden mulch, commercial motorway mulch and playground bark.
Tauranga-based Goodwood Ltd bought a $280,000 wood grinder with contributions from the Government's Waste Minimisation Fund.
The fund was funded by a levy of $10 per tonne charged on waste disposed at landfill. More than $60 million nation-wide had been awarded to more than 100 projects.
Bay of Plenty MP Todd Muller said huge amounts of wood waste were put into landfills which could and should be recycled.