What are raw materials?

  • Jul 26, 2021
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Raw materials are a fundamental part of finished products, are originally a natural resource which is processed and sold to production companies, either industrial or service, so that these products suitable for the consumption.

Therefore, any good destined for transformation through a production process to become a consumer good is considered as raw material.

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In this article you will find:

What is the fundamental process?

The base product can go through different processes, sometimes it is manipulated and worked until it becomes a semi-finished product and then it will go through other different jobs until they become finished products, that is, a consumer good, ready for use or consumption.

What is raw material and how is it classified?

The raw material or main product as material extracted from nature it can be classified as follows:

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Raw Material of mineral origin:

They come from the ground, for example: gold, copper, iron, all metals and stones such as marble, granite, among others.

Mineral raw materials

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Energy raw material:

They come from nature and are generally non-renewable natural resources, for example, oil, water, gas, among others.

Energy Raw Materials

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Agricultural raw materials:

Two groups can be distinguished, those of plant origin and those of animal origin.

  • Vegetable origin: They come from nature, vegetation, plants and trees, for example: fruits, rice, cocoa, corn, wheat, potatoes, bananas, tomatoes, sugar cane, coffee among many more.
  • Animal origin: They come from nature, from the animal world, for example: meat, leather, chicken, feathers, milk, eggs, fish, among others.
Agricultural Raw Materials

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Industrial raw materials:

They come from nature, but they have already gone through a process of transformation.

  • Organic: They come from the activities of the primary sector such as agriculture, livestock, forestry and fishing.

They are the basis of the textile, footwear, food industries among others, for example: wool, cotton, linen, silk, leather, vegetables, fish, pasteurized milk, meat, refined sugar, cocoa in dust, etc.

  • Inorganic: They come from mining and are the basis of heavy industries such as metallurgy, steel, chemicals and construction.

Almost all undergo some transformations for later industrial use. For example, metallic minerals such as iron, aluminum, copper, non-metallic minerals such as salt, fertilizers and industrial rocks used in construction such as plaster, cement, granite, marble, etc.

  • Chemical: That group made up of materials that are artificially obtained through procedures chemicals and serve as the basis for other industries, such as plastics, fibers synthetics, etc.
Industrial Raw Materials

Raw material as a source of wealth for a country

Traditionally it had been considered that the production of primary product, constituted the source of income and half the wealth of a country, since they are usually due to the abundance of resources in the territory.

New studies indicate that economic development and industrial proliferation have shown the shortcomings of these goods, especially in the variation of their prices and their low added value.

Over time the production of raw Materials as a primary source of income for a country was seen as a sign of economic backwardness, due to the On the contrary, developed countries were specializing in the manufacture of goods and in the sector of services.

Added to this is the drawback that raw material production depends on uncontrollable natural factors including climate, which can greatly affect soil productivity.

What is the importance of raw materials?

For a product to be competitive, it must be of quality and have a good price, this is where it is handled and maneuvered with the use of various materials.

Raw material It is one of the most important elements to consider when managing the final cost of a product.

The finished product is the result of applying certain processes to some raw materials, therefore that in the final cost of the product includes the cost of each raw material and the value of the process applied. Likewise, the quality of the final product is largely due to the quality of the raw material.

In a competitive market like the current market, you must be efficient in managing costs, a high profit margin can only be achieved By reducing costs, however, you should not risk the quality of the product, so you should choose raw materials of excellent quality.

The solution for profitability of a company It is not to increase the sale price, but to efficiently manage costs and maintain the quality of the product that ultimately determine the value of the product.

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