The primary sector of the economy makes direct use of the natural resources. This includes agriculture, forestry, fishing, mining, and extraction of oil and gas. This is contrasted with the secondary sector, producing manufactured goods, and the tertiary sector, producing services. The primary sector is usually most important in less developed countries, and typically less important in industrial countries.
The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are also considered as a part of this sector.
Primary industry is a larger sector in developing countries; for instance, Mining in 19th century South Wales is a case study of how an economy can come to rely on one form of business.
Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. However, in recent years, the number of terminal exchanges have heavily reduced Canada's primary industry, making them rely more on quaternary industries.
Some countries still operate on a predominantly first sector basis. India for instance is roughly equally split between all three sectors. Essentially, a third of the entire economy is based on the first sector. Where a country is far more diversified economically, such as the USA, the tertiary levels become more important. However, all people need to eat, so the agricultural sector remains the bedrock of the economy, even where the secondary economy is more important in that particular economy.
As most primary sector goods are sold in commodity markets, the development of the market often makes the primary sector less important as the economies begin to tip more towards the tertiary and secondary. However, the primary sector is vulnerable to price fluctuations. Commodity markets are never very stable in their prices, making an economy exclusively based on the primary sector very hard to plan ahead for. It also has an effect of making actual price determination and fixing very hard.
As environmental pressures build, many non-renewable metals and minerals are becoming mined out. For example, the value of copper is such that salvaged copper is now a realistic option instead of it being mined.
Finding new supplies and sources of such non-renewable products will become increasingly difficult and begin to drive up prices for them inside the primary sector, having an effect further up the chain, making all prices in all sectors rise.
The manufacturing industries that aggregate, pack, package, purify or process the raw materials close to the primary producers are also considered as a part of this sector.
Primary industry is a larger sector in developing countries; for instance, Mining in 19th century South Wales is a case study of how an economy can come to rely on one form of business.
Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. However, in recent years, the number of terminal exchanges have heavily reduced Canada's primary industry, making them rely more on quaternary industries.
Some countries still operate on a predominantly first sector basis. India for instance is roughly equally split between all three sectors. Essentially, a third of the entire economy is based on the first sector. Where a country is far more diversified economically, such as the USA, the tertiary levels become more important. However, all people need to eat, so the agricultural sector remains the bedrock of the economy, even where the secondary economy is more important in that particular economy.
As most primary sector goods are sold in commodity markets, the development of the market often makes the primary sector less important as the economies begin to tip more towards the tertiary and secondary. However, the primary sector is vulnerable to price fluctuations. Commodity markets are never very stable in their prices, making an economy exclusively based on the primary sector very hard to plan ahead for. It also has an effect of making actual price determination and fixing very hard.
As environmental pressures build, many non-renewable metals and minerals are becoming mined out. For example, the value of copper is such that salvaged copper is now a realistic option instead of it being mined.
Finding new supplies and sources of such non-renewable products will become increasingly difficult and begin to drive up prices for them inside the primary sector, having an effect further up the chain, making all prices in all sectors rise.