I was wondering if it was ok to use cedar chips (just in the nest boxes) instead of cedar flakes/or shred? The chips would get rid of bugs and stuff. Just wanted to know if the chips would be safe.
Ceder chips and bugs
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I have not found cedar to be particularly effective in deterring bugs around my gardens, so I wouldn't risk it around my birds. There are alternatives that are safer- DE sprinkled in the boxes comes to mind. Cedar contains oils that are a liver toxin to a variety of animals. I would be hesitant to put them in contact with something that could rub off onto their feathers and cause liver problems. Birds are constantly preening their feathers, so even if they can't eat the bedding they may still ingest the very thing that makes cedar toxic.
Causes respiratory problems as well which can be fatal. Some plants act as a natural bug deterrent like marigolds, lemon balm and garlic. Some of the plants I mentioned attract these great bug cops that prey on the bad bugs. You may want to check the garden links from this site for suggestions on alternatives to pesticides