There are three (3) stages of production.
- Primary Production or Extractive Industries
This involves the extraction of the gift of nature as raw materials. It deals with the extractive industries like mining, forestry, fishing, hunting etc.
- Secondary Production or Manufacturing Industries
It involves all activities which process or transforms the raw materials into semi-finished or finished goods. Example tyres, shoes, furnitures, cars etc.
- Tertiary Production (Distribution or Services)
They are involved in the provision of services both personal and commercial services. Commercial services like transportation, banking, insurance, wholesaling, retailing and personal services like hairdressers, doctors, teachers, accountants etc. The final stage of production is carried out by these industries.
Example of primary, secondary and tertiary production.
Extractive rubber
Manufacturing tyres, shoes, buckets etc.
Distribution whole sellers and retailers
From the above example, later has been extracted from rubber tree, the used to manufacture tyres, shoes and buckets which are distributed by wholesalers and retailers to the final consumers who ends the chain of production.
