Primary Sector

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

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

What is the primary sector?

The primary sector is the sector of the economy in which activities are carried out that involve 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: livestock farming, agriculture, tree felling, fishing, among others.

The primary activities were developed by humans since prehistory and they are essential to supply food and resources to the world population. For example: picking oranges, shearing sheep's wool or planting corn.

Because there is no production of the product (only collection from the natural environment that provides it), primary activities are usually 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 of them fulfills a specific function within the production, distribution and marketing of goods and services. However, the first three sectors encompass almost all economic activities.

See also: Economically active population

Characteristics of the primary sector

Some characteristics of the primary sector:

  • It is one of the sectors into which economic activity is divided.
  • It is made up of activities that are responsible for the exploitation of natural resources to obtain raw materials.
  • Obtains raw materials 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 involve as much technology, innovation or industrial development.
  • It is formed by the first economic activities that human beings developed, such as fishing.
  • Provides food for human and animal consumption.
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Primary sector activities

Among the main activities of the primary sector are:

  • Cattle raising. It is the economic activity in which animals, such as cattle, sheep or pigs, are raised for consumption or exploitation. Products such as dairy, meat, leather, among others, are obtained from livestock farming.
  • Agriculture. It is the economic activity in which fruits and vegetables are planted to use them as food for human beings. Cereals, such as wheat or soy, are also planted to produce foods such as flour, oil or semolina.
  • Fishing. It is the economic activity in which fish and other aquatic animals, such as crustaceans and mollusks, are obtained for human consumption.
  • Beekeeping. It is the economic activity in which bees are raised to obtain the resources they produce, 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 deposits to obtain hydrocarbons is not a primary activity but a secondary one.

Secondary sector

Secondary activities are responsible for the transformation of raw materials.

The secondary sector of the economy includes 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 allows the generation of goods with greater added value.

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

Tertiary 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 services, gas services, internet services, health services, telecommunications, security services, entertainment, among others.

Quaternary sector

The quaternary sector of the economy includes intangible activities, that is, not visible. Its function is the development of specialized research, innovation and information. In this sector, companies (primary, secondary or tertiary) usually invest, since 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 quinary 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 within this area are the domestic activities that a person carries out within their home.

References

  • “Industries and sectors” in International Labor Organization.
  • “Sectors of industry” on BBC.
  • “Production sectors and their characteristics” in EAE.
  • “Economic sectors” in Banrepcultural.