I have used various types of mulch in my flower gardens for years and recently (last spring of 08) switched to red mulch. My plants are not doing well ... I notice when I handle this mulch and it gets wet it does stain my hands. Is it possible there is some type of toxic chemical or dye that is hindering the healthy growth of my plants?
if color comes off when the stuff is wet, then it's definitely got some kind of dye in it...i'd remove it and replace with something that's not treated in any way.
I have seen red bark/wood mulch before. It was from both eucalyptus and cypress trees. I don't know why they colour it. Decoration, I guess. I saw this product in Atlanta, maybe it is popular in the South. I see one online--claims to be all natural dye. If plants are not doing well, the dye might be a problem or maybe it is just the wrong type of mulch.