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The life cycle of the processionary caterpillar begins when adult moths lay their eggs on pine trees during the summer months. Each cluster of eggs can contain hundreds of future caterpillars. By late autumn, the larvae hatch and begin feeding on the pine needles, often causing extensive defoliation. As the larvae grow, they construct silk nests high in the trees for shelter during colder months. In early spring, they descend in their characteristic "processions" to find suitable soil in which to pupate. Here, they bury themselves and metamorphose into moths, completing the cycle. This cycle is particularly synchronized with the seasons, making springtime the peak period of caterpillar activity.
Below is a photo of a processionary caterpillar nest. In some years and some locations they have reached epidemic proportions and each tree can have several nests.
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The only certain way to protect your dog is to not go anywhere where there are pine trees during the worst times. In warmer areas the worst time is January and February. In cooler more mountainous place the worse time is a bit later.
However if you are surrounded by pine forests it can make life difficult. In my own experience my dog does not take any interest in the caterpillars and there has never been a problem. I always have my dog on a lead when we are going through a caterpillar zone and I always keep the dog on a short leash so that it would be impossible to interact with anything on the ground. I have taken my dog through caterpillar infested roads and my dog have never got any caterpillar hairs in her feet. I don't think she has actually walked on a catterpillar. Maybe I have just been lucky. If you can avoid pine trees.
If you own the land where the pine trees are growing you can use traps which catch the caterpillars as they descend. More info The commercial traps seem quite expensive and there are many you tube videos explaining how to make a DIY version.
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