The compost created from the packaging is then spread on the organic maize paddocks which are used to fed the chickens.
The wood shavings laid down in the chicken sheds are also used to make compost.
The judges commented that Bostock Brothers is systematically working through sustainability changes.
"This organic business demonstrates understanding of the importance of maintaining soil quality and running a circular system which includes growing methods and recycling its home compostable packaging."
Co-owner George Bostock said the compostable packaging has been really well received.
"We want to be part of the drive to get rid of plastic waste and be one of the leaders in our food industry to do this. We are passionate about farming sustainably and reducing our environmental impact to meet demand from our conscious consumers.
He said it was "awesome" to have their sustainable farming practices such as composting, solar power and air chilling instead of using chlorine water baths recognised.
The company has also been working with suppliers towards reducing the waste they send to the landfill by 50 per cent in the next three years.
"It's a lot more work to produce food sustainably like we do, but in the end it's all worth it and we are so pleased to be endorsed by such a great competition,"