My guess would be that the skin glue is either spray-dried (an industrial technique) or dried in thin sheets (e.g. on aluminum foil or plastic) and then broken and ground up to make a rehydrate-able powder. Boiled, gelatin-like skin extract is probably what they are selling as powdered skin glue.
I have used the powdered skin glue to size a canvas, a friend got it in powdered form from an industrial supplier, and when we re-hydrated it it was definitely gelatinous, though it smelled much stronger, kinda like wet rawhide.
If you are not interested in the process of making gelatinous goo into powder, you might be able to paint the goo directly onto canvas or boards, and
sell value-added 'all natural, traditional
art surfaces' that would be easy to dry and keep.
I suspect that small, thin chips of the stuff would be as easy to rehydrate as powder; it tends to chunk up, and need constant stirring.
-Erica Wisner