Into the compost pile it goes which is next to the coop.
I have 9 hens in a 8x6 coop. This spring I started with a layer of pine shavings as a base. Then I would throw in leaves, grass clippings etc every couple weeks. The price is right on that stuff and the chicks love digging through them. I would throw in a handful of scratch every couple weeks and they kept it stirred up. No stink at all. At the end of the summer I tilled my garden and then spread the used bedding over the garden. I started this winter with a fresh layer of pine shaving and then add leaves to it. Now that we have snow on the ground and the temps are cold I have thrown in some straw for them. Plan to do this over the winter and spread it over my garden again in the spring. Till it in when it's time to plant.