A method, system and formulation for treating animal bedding and animals is provided. For the method, it comprises: mixing used bedding with unused bedding to produce mixed bedding deodorizing the mixed bedding drying the mixed bedding to have a moisture content of between approximately 7 and 14% removing lighter fibers from the mixed bedding adding an oil treatment to the mixed bedding to have a moisture content of between approximately 7 and 14% in the mixed bedding and bagging the mixed bedding while the mixed bedding is still moist from the oil treatment.