Who are the producers?

In an economy the most important role is done by producers or the manufacturers. Who are called as producers? Let’s have a brief discussion about the types of producers and role played by producers. There are three kinds of producers in the economy. The first kind of producers are those who produce food and other crops forest products, etc- Goods that may be called the products of nature. They are called the primary producers. Obviously, theirs were historically the first productive activities of man comprising agriculture, cattle rising, poultry farming, forestry, stone quarrying, mining and so on.

The second kind of producers are those engages in manufacture of goods on large and small scale in various industries such cotton textiles, steel, etc. they are called secondary producers. The broad difference of their activities from primary production lies in the fact that they produce what may be called man made goods. There is a third kind of productive activity in the economy apart from primary production like agriculture and secondary production like manufacture of industry.

As the primary and the secondary productive activities grew in society men found that the economy needed people who provided not physical goods only but also services like transport by road or by ship, storage of goods, banking and insurance and so on. In fact it is more sensible today to think of production not as the production of goods only bys as production of goods and services. Those who are engaged in providing services are, therefore, the tertiary producers.