The Yeo Valley company was set up back in 1974 in Blagdon, near Bristol, to produce yogurts and desserts. It continued on a conventional path until the early 1990s, when a few nearby farms moved over to organic milk production without a ready market for their milk. Yeo Valley decided to produce an organic natural yogurt and the farmers set up a co-operative called OMSCo (Organic Milk Suppliers Co-operative). At the time, consumer demand for organic dairy products was low and the farmers were looking for a ready market for their milk. Yeo Valley saw the opportunity to benefit from a local supply of organic raw material and, in 1993, began making organic yogurt.
Three years later, the Yeo Valley Organic Company was set up solely to produce organic products. The new company wrote clear objectives into its legal constitution: