That's too bad. Do you have any free wood chip alternatives, like a county landfill?
FYI, this winter I used paper shreds inside the chicken coop as deep bedding. I make my own paper shreds at home, from newspapers, junk mail, food grade light weight cardboard, etc... and that worked out very well for me. The paper shreds should break down into good compost a lot faster than wood chips, too. So if you live in an area that wood chips are expensive, you might consider using paper shreds for the coop and composting.
I would not recommend using paper shreds as mulch in the gardens or walkways unless you don't mind having confetti flying all over your yard.