If kibbled is the same as smashed (looks it, from a quick run down google images!), try crushing them in bulk rather than grinding them with a pestle and mortar or mincing them in a blender.
If your bird peanuts came in a big clear plastic bag like they usually do, tip about half out into a bucket or container for safekeeping til later, then fold over the hole you opened, fasten it with tape (not too much air inside) Lay it on a flat hard surface like a concrete path or patio or tarmac driveway, put on some work boots or wellies, and stomp about on it. For as long as it takes to have them looking as smushed up as your birds seem to like. You can use a mallet or chunk of wood for more violent smash effect if desired, but nuts usually do crush up ok just from being walked around on.
Any other tough plastic bag would do, too, if you've got one from animal feed or compost, that sort of thing. Binbags and the flimsy 5p-tax shop carrier bags are not strong enough, they stretch and puncture so you end up with nut crumbs and grease everywhere.
I've never tried this for birds (mine just go at the whole peanuts no problem, I'd never even heard of the kibbled kind being available!) but it works for peanuts, cashews, pecans and walnuts if you need a fairly coarse 'chopped' effect in a recipe. I've had some odd jobs in my life, hahah
