Test was done by Yates. Chunky mulch is that defined as no pieces being able to go through a screen with 5mm holes.
http://www.sgaonline.org.au/info_mul...y_or_fine.html
I also think this web page sums it up well.
http://www.drouintreeservices.com.au/mulching.html Quote:
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The reason is that a chunky wood mulch allows the soil to breathe, allows water to easily penetrate through to the soil and doesn't wick moisture from the soil. It's the mulches job to reduce evaporation, shade the soil, suppress weeds, allow air circulation (as roots and soil need it) and decompose to add organic matter to the soil.
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