A method for making a hydraulically applied mulch using a natural biofiber material preferably comprising of 100% cotton byproduct or a mixture of cotton byproducts and other biomaterials selected such as, hay, grass, kenaf, straw, coconut, bamboo, hemp, bagasse and plant residue (cereal grains, rice, soybeans, grass seed, wood, sawdust, wood pulp, paper, or mixtures thereof). These fibers bear a natural waxy coating. The method includes the optional step of introducing the shredded biofiber composition into a first steaming chamber to stem the biofiber composition, followed by shredding the biofiber composition, and then introducing the shredded biofiber composition into a second steaming chamber to steam, break down and create porosity in the waxy coating of the fibers causing the fibers to become more hydrophilic. The biofibers are steamed followed by drying causing them to curl or physically deform. The shredded and steamed biofiber composition is then mixed to entangle the fibers, and the shredded, mixed and steamed biofiber composition is introduced into a drying chamber for drying, the resulting composition is then cooled and packaged, ready for mixing with water and spray application. The shredded, steamed and dried composition promotes entanglement of the fibers in a 3-dimensional matrix suitable for use as hydraulically applied mulch, and binding agents (tackifiers), dyes, rewetting agents, activators, and other additives may be added as desired.