This is a mug sculpted as a wood-carved version of the Orange Bird.
Orange Bird is a Disney character first created in 1969 and debuted in 1970 as a mascot for the Florida Citrus Commission, in exchange for them sponsoring the Enchanted Tiki Room attraction and Sunshine Tree Terrace at the Magic Kingdom theme park. Orange Bird is an animated orange canary. The artistic design of Disney’s orange bird is actually attributed to two different artists, depending on which sources you’re looking at. Most official Disney publications say he was created by Don MacLaughlin, but a number of other historical accounts mention Bob Moore. It seems that perhaps Don MacLaughlin created some of the original designs or concept art and then worked together with Moore to narrow down and finalize the design.
From Trader Nic's:
"This mug stands 8 inches tall and holds up to 18oz of your favorite drink. Sculpted by Vassar and produced by Monkey Skull.
Limited Edition 50pc 1971 Glaze."
*This design was released in multiple color-ways.