A shredding and baling apparatus provided includes a shredding assemblyoperatively connected to a baling assembly via a conveyor. A rotatable drumwithcutting teeth spirally arranged along the drum is preferably centered within alowerportion of an intake hopper for cutting through material as it is fed into thehopper. Fixedcutting teeth are preferably arranged in a row or rows along each of thelongitudinalsidewalls of the hopper, adjacent the cutting drum. A touch screen display andcomputermay be used in combination with sensors to monitor and control the shreddingand balingoperation, and a hydraulic system is used to drive the components. Theshredding andbaling assembly is preferably designed in an industrial size to handle highvolumes ofmaterial and may be driven or transported from one location to another.