It's milk that the company has extracted all the nutrients from, ~~and replaced them with sugar~~. Now you get expensive sugar water, and they can sell the good stuff in other products such as whipped cream, heavy cream, and butter.
Edit: apparently the higher sugar content in skim and nonfat milk is because the removal of fat concentrates the remaining lactose. They don't add additional sugar. The original point still remains though, that it's mostly just milk flavored sugar water.