The lightest supersymmetric particle, most likely the lightest neutralino, is one of the most prominent particle candidates for cold dark matter (CDM). We show that the primordial spectrum of density fluctuations in neutralino CDM has a sharp cut-off, induced by two different damping mechanisms. During the kinetic decoupling of neutralinos, non-equilibrium processes constitute viscosity effects, which damp or even absorb density perturbations in CDM. After the last scattering of neutralinos, free streaming induces neutralino flows from overdense to underdense regions of space. Both damping mechanisms together define a minimal mass scale for perturbations in neutralino CDM, before the inhomogeneities enter the nonlinear epoch of structure formation. We find that the very first gravitationally bound neutralino clouds ought to have masses above 10^{-6} solar masses, which is six orders of magnitude above the mass of possible axion miniclusters.
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