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I agree wholeheartedly with your definition of exploitation. Which is why I wish for best practices:

• Free range, proper food and shelter, and generally ensuring best quality of life in any way possible, and treated with dignity in exchange for the milk.

• Leave the cows and bulls to their own devices in the fields, so that that pregnancy can happen naturally

• Jersey cattle and other farm cows produce huge amounts of milk, and the calf is only killed out of greed to maximise profits

• Don't inject cows with hormones for the sole purpose of driving up milk production

• Don't kill the cows for meat

Basically, I would like it if cows were treated like pets with whom you exchange food in exchange for their stuff, than goods-production-biomachines.

This is of course an expensive endeavour and the feasiblity as a business model on a large scale in every circumstance is debatable - but it is very much possible. For example, we have a farm nearby where they treat the cows with dignity, and manage to be profitable. The milk they sell is more expensive than the normal one, but it is worth the moral relief.