Depends why you are doing it. Woodchips will keep weeds down, but it will be some time before they decompose enough to benefit the trees. Personally I go for grass, mow regularly and leave the cuttings. That seems to be the approach of most commercial orchards around here.
In Texas we mulch fruit trees to eliminate nutrition competition by keeping weeds and grasses down, to conserve water and to help maintain soil temperatures. Hardwood mulch lasts much longer than softwoods and usually costs more but either one works. When mulching a tree always keep the mulch away from the trunk a few inches and if possible mulch out to the dripline of the tree to a depth of about 3 inches.
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