I guess if you want to clean a muddy stinky mess why not, again complicating thing, you need something absorbent not soil. If you want to do this as a business there is no need to reinvent the wheel.
Pine is fine, pine found in store is kiln dried, I produce thousands of rodent each year with no respiratory issue (going on 11 years now), I am curious how many do you produce and what was the percentage of respiratory issues in your colony?