Bedmax began operations in Belford in 2000 producing a new bedding to counter the problem of shavings being too small and dusty as a result of today’s faster machining speeds.

The product is endorsed by event riders and racehorse owners and is exported as far as Hong Kong. Desert Orchid slept on Bedmax, and the company now has a second factory in Newark and a turnover of around £5.5m.

A spokesperson said: “The three millionth bag was a very important milestone for our Northumberland production plant. Placed end to end, three million bags of Bedmax would pave a yellow bag road 1,250 kilometres long, from Belford to Barcelona.”

The business started when the company formed by Tim Smalley and Chris Leyland spotted a gap in the market for pine shavings. The timber is cut to size, dried and screened in a quality control process.

Mr Smalley said that prices were so low at the time they believed they could profit from making a larger flake from harvested timber.

However, with demand for timber in the north increasing from 13 planned power stations, Mr Smalley said the company has plans to expand further in the south to take advantage of the timber supply on the south coast.