I had an arborist drop off a dump truck load of freshly ground wood chips. It appears to be cedar tree he cut down. I just wanted to make sure this stuff is fine to use as a mulch before I put it next to my fruit trees
Perfectly fine. The only "problem" I have seen with cedar is an absence of insects in and around the chips and it takes longer for them to decay. In my arid area that both are undesirable; plus I have to pay for cedar. In a lot of other areas, certain pests that like to interface with the root flare might be inhibited.
Here is a link that might be useful: cedar wood chip FAQ
Is it worth using a seperate mulch around the perimeter of my young trees? Or does it not matter at all?