Yes it can - but it needs to be well rotted first.
I find the black plastic compost bins like the council offer are very good - mix a few grass clippings in as well as straw from the nest boxes and it will heat up nicely in a sunny spot. Give it 8 months to a year and you should start to get some compost from the bottom.
Wood shavings take the longest to break down but are the best bedding material. The chicken poo works wonders on the plot.
Tim