What are raw goods?

Raw goods refer to materials that are extracted or harvested from natural resources before they have undergone any significant processing or transformation. These goods serve as the foundational ingredients or inputs for manufacturing or producing finished products. They can include items such as agricultural produce, minerals, and timber, among others.

Understanding that raw goods are essential in the supply chain is crucial because they represent the starting point for the production of consumer-ready items. In contrast, finished products are those that have been fully processed and are ready for immediate consumption or use, which is not the case for raw goods. Similarly, consumer-ready items in stores are the end products, while items produced solely for export do not encompass the broader category of raw goods, as raw goods can be utilized in domestic production as well. Thus, raw goods play a critical role in various industries and the economy as a whole.