primary sector

Y-Negocios

2022

We explain what the primary sector is and the other sectors into which economic activity is divided. Characteristics and examples of each sector.

The primary sector is usually part of the economies of developing countries.

What is the primary sector?

The primary sector is the economy in which activities involving the exploitation of natural resources for the extraction of raw Materials.

Raw materials can be used for direct consumption or used by other economic sectors for the production of goods and services. Some primary activities are: cattle raising, the farming, cutting down trees, fishing, among others.

The primary activities were developed by the human being from the prehistory and are essential to supply food and resources to the world's population. For example: harvesting oranges, shearing sheep's wool or planting corn.

Since there is no production of the product (only harvesting from the natural environment that provides it), primary activities tend to be the basis of the economy of developing countries.

In addition to the primary sector, there are also the secondary, tertiary, quaternary and quinary sectors of the economy. Each one of them fulfills a specific function within the production, distribution and commercialization of goods and services. However, the first three sectors encompass almost all economic activities.

Characteristics of the primary sector

Some characteristics of the primary sector:

  • It is one of the sectors in which the economic activity.
  • It is made up of activities that are responsible for the natural resources exploitation to obtain raw materials.
  • Obtains raw material for direct use or for the production of other goods (made by the secondary sector of the economy).
  • It is the sector of the economy that prevails in underdeveloped countries, since it does not imply as much technology, innovation nor industrial development.
  • It is formed by the first economic activities developed by the human being, like fishing.
  • Provides food for human and animal consumption.

Primary sector activities

The main activities of the primary sector include:

  • Cattle raising. It is the economic activity in which animals are raised, such as cattle, sheep or pigs, for their consumption or exploitation. From livestock are obtained products such as dairy, meat, leather, among others.
  • farming. It is the economic activity in which fruits and vegetables are grown to be used as food for human beings. Cereals are also sown, such as wheat or soybeans, to produce food such as flour, oil or semolina from them.
  • Fishing. It is the economic activity in which fish and other fish are obtained aquatic animals, What crustaceans and mollusks for human consumption.
  • Beekeeping. It is the economic activity in which they are raised bees to obtain from them the resources they make, such as honey that is used for direct consumption.
  • Forest exploitation. It is the economic activity in which trees are cut down to obtain resources such as wood, which is used both as a source of energy and in the production of goods.
  • Mining. It is the economic activity in which mining deposits are exploited for the extraction of minerals such as gold, copper and silver. Mining that exploits the deposits to obtain hydrocarbons it is not a primary but a secondary activity.

Secondary sector

Secondary activities are responsible for the transformation of raw materials.

The secondary sector of the economy comprises the production of products from raw materials obtained by the primary sector. This area uses machinery, which is why it is also known as the “industrial sector”.

Secondary activities are fundamental within the economy and are typical of developed countries, since they use technology and machinery. The raw material that is transformed makes it possible to generate goods with a greater added value.

Some examples of activities in this sector are: food processing, beverage manufacturing, hydrocarbon distillation, the automotive industry, the pharmaceutical industry, chemical industry, the textile industry, the tobacco industry, construction, among others.

Third sector

The tertiary sector of the economy is the one that offers services to society and industries to satisfy different needs. This area is also known as the “service sector”.

Some examples of tertiary activities are: transportation, water services, insurance companies, banks, commerce, electricity, gas services, Internet, health services, telecommunications, the services of security, entertainment, among others.

Quaternary sector

The quaternary sector of the economy includes intangible, that is, non-visible activities. Its function is the development of specialized research, innovation and information. In this sector the Business (primary, secondary or tertiary) tend to invest, as this helps their development and expansion.

Some examples of quaternary activities are: consulting, development and planning, scientific research, information technology, among others.

Quinary sector

The fifth sector of the economy includes non-routine and non-profit production services such as culture, education, entertainment and art. However, few economists refer to the existence of a quinary sector.

Also included in this area are the domestic activities that a person carries out within their home.

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