In Jain Dharma, the principle is ahimsa — non-violence toward all living beings.

So, animal byproducts are generally not considered acceptable, even if they are obtained in a so-called “humane” way. The reason is that Jain ethics focus not only on suffering, but also on non-participation in exploitation and harm.

For dairy specifically, Jain views vary in practice, but the stricter and more widely accepted Jain ideal is:

• Milk, curd, ghee, butter, paneer, etc. are not preferred, because they involve the use of animals for human benefit.
• Even if no direct killing is seen, the industry typically involves control, separation, breeding, and eventual harm to cows and calves.
• Many observant Jains avoid dairy for this reason.

In short:

• From a strict Jain perspective: no, animal byproducts are not considered proper food.
• The most aligned path is pure vegetarian or vegan-style food that avoids all animal-derived products.

If you want, I can also explain the Jain reasoning on dairy in simple points.