I am a dog groomer and therefore have lots of dog hair to be disposed of. At the moment it just goes into the bin but I am wondering if anyone knows if there is an alternative more environmentally friendly way to dispose of it? Could it be composted or added to a wormery for example? Any suggestions welcome.

Here's a few suggestions:

Add it to your home compost in thin layers - it allows air into the material
Dig it into your garden to break up clay soil
Use it at the base of special plants to prevent slugs - you'll probably need to weigh it down with a little gravel
Hang it in your garden in nets (or nut feeders) during February, March and April where it will be collected by nesting birds
Put it into molehills to deter moles
Put it into your collected compost waste - just check with your Council which bin to use (we can use our food waste bin or our green waste here)

HTH :)

**Also try offering bags of it on Freecycle for others to do the above too

Dog hair in our house is put out for the birds and BEE's !! I have a couple of square, suet food 'cages' which are ideal for fur (or dried grass) and can hang in a tree or bush. The other thing I use is an old wellington boot wedged into a tree (so the toe is skywards and keeps the contents dry) which I fill with fur and was delighted to see that bee's were using it this year. Maybe you could give it back to your customers and suggest they use it for the birds and bee's in their own gardens? :)

Or find someone who uses it to knit. ;-)