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I have never been a fan of adding dry milk. I didn't see anything about how long you mixed and what lean content the beef was. Just a few thoughts.....When you have every thing ground, add seasonings and water ( you may need a little extra water with the bread crumbs) Mix thoroughly. When i say thoroughly, the product should have little string looking things as you pull it apart. Hope this helps.
i just read your post, and i believe maybe your meat may be too warm,or maybe your grinder knife and plate may be dull. warm meat will actually tear through a dull knife. it will still look good but be dry when it is cooked. as for the crumbly part, it could be a shortage of binder. i usually use 2 cups of unbleached wheat flour to 25 lbs and it holds together fine. just another thought. hope it helps