Melanie not sure all birds eat caterpillars but pretty sure I read all feeders birds do eat bugs every now and then. I think black sunflower seeds are by far the most loved seed by most song birds , but squirrels love them too and will gobble them up if given the chance. Woodpeckers love suet as do starlings unfortunately. Blue jays , woodpeckers , nuthatches and titmice love peanuts , but again so do squirrels and starlings.