What is Production?The processes by which raw material, semi-

finished goods, and intangible inputs, such as

knowledge or ideas are transformed into

tangible goods or services.

Production is the act of creating goods and

services to satisfy individual needs and wants.

Stages of ProductionPrimary Level

Secondary Level

Tertiary Level

Stages of Production?Primary

This type of production is directly aligned

to extractive industries, and is therefore the first

level of production. It involves extracting raw

materials (natural resources) from the earth.

Stages of ProductionSecondary

At the secondary stage of production,

manufacturing industries convert the raw

materials from the extractive industries into the

desired products.

Stages of Production Tertiary

The tertiary level of production refers toall the services that are provided to consumersand to manufacturers. If goods are produced thenthey must get to the consumers through variousservices. If producers or manufacturers are to getthe goods to the consumers, then they need toaccess funds from financial institutions tofinance distribution and other related activities.

Industries Associated With Primary Level

Extractive Industries: In the extractiveindustries, raw materials are removed directlyfrom the natural environment. Therefore,agriculture, mining, fishing and forestry areextractive industries. In the Caribbean, bauxitemining takes place in Jamaica and Guyana.However, the bauxite industry is undergoingsome challenges given a decline in the demandfor bauxite on the world market.

Oil drilling and mining take place in Trinidad

Industries Associated With Primary Level

Lumber that is used in the furniture and building

industries comes from Guyanese and Belizean forests.

The agricultural industry produces sugar cane, bananas,

fruits, vegetables, spices and ground provisions such as

yam, and dasheen for domestic and export purposes.

Fruits such as bananas and mangoes are in abundant

supply and can be used as they are, or can serve as raw

material in the food processing industry. Horticultural

produce is also added to the list of exports.

Industries Associated With Primary Level

Primary Production

(Extractive Industries)

Some Caribbean Products Some products of More developed Countries

Agriculture:

Sugar cane

Yam

Bananas

Vegetables

Fruits

Dasheen

Spices

Cocoa

cofee

Forestry:

Timber

Fishery:

Fish

Mining:

Bauxite

Ore

Gold

Petroleum

Quarrying:

Stone

Gravel

Agriculture:

Wheat

Barley

Tobacco

Oats

Soya bean

Potatoes

Vegetables

Tobacco

cotton

Forestry:

Timber

Fishery:

Fish

Mining:

Copper

Iron

Nickel

Zinc

Tin

Diamond

Gold

Petroleum

Quarrying:

Stone

Gravel

Industries Associated With Secondary Level

Manufacturing Industries

Bauxite ore is converted into aluminum

Oil is used to generate electricity

Trees are inputs in the production of furniture and building

construction

Some fruit and ground provisions are inputs in the

production of processed food items

Cement is used in building and road construction

Oil is used in the production of petroleum-based products

Industries Associated With Secondary Level

The Construction Industry

The construction industry, another major secondary

level industry, engages in building and other types of

construction activities. The industry uses mainly

manufactured products, for example cement made

from limestone and clay (primary products) in the

construction of buildings and sidewalks. Asphalt, a

by-product of oil, is used with limestone and clay

(marl) in road construction.

Industries Associated With Secondary Level

The assembling of prefabricated materials is apopular method used in the construction industry.Prefabrication means that parts of the products areproduced in factories and then assembled. Houses,aeroplanes, bridges, and some swimming poolsare assembled on site.

Other products are assembled, not on site, but inother factories or manufacturing plants. All theseproducts are examples of secondary levelproduction or what is commonly referred to asmanufacturing.

Industries Associated With Secondary Level

Garment Industry

The garment industry, another major secondary

level industry, engages in the production of

garments and other related products. The

materials used for the construction of garments

come from cotton and oil-based materials,

among others.

Examples of outputs from Secondary Production.

Machinery

Paper, petroleum

Oil

Wood products

Steel

Iron

Motor vehicles

Aeroplanes

Processed food

Rum

Garments

Examples of outputs from Secondary Production

Caribbean countries that engage in productionoften depend on more developed countries forthe supply of some raw materials they need.Also, because of the scarcity of financialresources, Caribbean countries tend to borrowfrom the more developed countries orinternational lending institutions or agencies tofinance major projects.

Industries Associated With Tertiary Level

The tertiary level of production refers to all the services that

are provided to consumers and to manufacturers. If goods are

produced then they must get to the consumers through various

services. If producers or manufacturers are to get the goods to

the consumers, then they need to access funds from financial

institutions to finance distribution and other related activities.

Some organizations participate in production at the three

stages: primary, secondary and tertiary while others participate

at the secondary and tertiary, or only at the tertiary level. All

countries are involved in offering services of one kind or

another and are thus involved at the tertiary level of production.

Industries Associated With Tertiary Level

Services can be direct, whereby the customer and the

provider of the service work together.

Service can be indirect, whereby the service is routed

through other companies.

Service can be commercialized, whereby a company

provides the services to an entire population.