Spray-dried zinc oxide ceramic granules can be viewed macroscopically as agglomerates consisting of mixed oxides, organic additives and intra-particle pores. The green properties of a compact produced by dry pressing are dependent largely on the input-granule characteristics. The organic additives in the form of binder, plasticizer, deflocculant and lubricant added to the slurry are critical in the production of powder with desired properties such as flowability, compressibility, green strength and density, etc. Several commercial latex binders and their blends have been studied and compared with plasticized polyvinyl alcohol for processing zinc-oxide varistor powder. It has been found that powder with improved characteristics is achievable through this new binder system. A lower viscosity of the slurry with latex binder containing the standard percent of solid content indicates the possibility of increasing the solid content, thereby enhancing the spray dryer efficiency.