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.

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Bay of Plenty MP Todd Muller said huge amounts of wood waste were put into landfills which could and should be recycled.

"My view is that if there is a waste product that we can easily reduce, reuse or recycle in some shape or form to help drive an environmentally sustainable economy then we should be striving to do so. That is what responsible economic and environmental stewardship is all about," he said.

He said our landfills received more than 40 tonnes of old kiwi fruit boxes. With a booming economy it was important to support sustainability initiatives.