Approximately 53% of the world’s dairy production takes place in low- and middle-income countries. This milk is predominantly produced by smallholder farmers. Enhancing the quality of milk production in these regions can have a considerable impact on animal health and welfare, the availability of dairy proteins, and better livelihoods for farmers. However, there is limited knowledge about milk quality awareness, economic benefits, and the technical possibilities of improved milk quality monitoring among smallholder dairy farmers, particularly in Indonesia. Therefore, Wageningen University & Research (WUR) in the Netherlands and IPB University in Indonesia are conducting collaborative research to explore opportunities for improving the livelihoods of smallholder dairy farmers through enhanced milk quality. We work together to improve the sustainability of smallholder dairy farming in Indonesia by conducting various empirical and bio-economic modelling studies aimed at improved animal health management. This collaboration needs to be continued to ensure that milk quality and mastitis monitoring programs are technically and economically efficient and sustainable.