no, not mulch made FROM squirrels, but mulch made BY them!
The Pine Squirrels make awesome mulch. If you have pine trees and see a pile underneath, it is most likely the pine cone remnants dropped by those industrious critters. I have been busy harvesting this stuff for my own flower beds. It looks awesome and it's FREE!
They do generate an incredible amount of "mulch". We have several trees on our land around which the squirrel "mulch" covers the ground several inches deep. Never thought of using it for mulch. Great idea. This stuff is even more uniform than chipper cuttings.