South Australian Business Chamber survey reveals huge fall in trading conditions

According to a new survey, Mad March failed to lift the spirits of SA business owners, showing trading conditions are at their worst level since Covid-19.

John Rohde on his Tarlee free range egg farm. Picture: Tom Huntley

Mad March and the festival season in Adelaide have failed to lift the spirits of South Australian business owners, according to a South Australian Business Chamber survey, with trading conditions slipping to their worst level since the depths of the pandemic.

The latest South Australian Business Chamber-William Buck Survey of Business Expectations, released on Tuesday, reveals its business conditions index plummeted by 12.1 points to 77.2 – where 100 is considered neutral – its lowest level since June 2020.

The index – a measure of businesses’ trading performance – has dropped in five of the last six quarters, with respondents struggling under the weight of rising business costs, red tape and regulation, and falling revenue.

South Australian Business Chamber chief executive Andrew Kay said the latest results defied the festive mood generated by major events such as LIV Golf, the Adelaide Festival, Fringe and AFL Gather Round, with several factors behind the worrying trend.

South Australian Business Chamber chief executive Andrew Kay.

“The global trade turbulence following President Trump’s tariff announcements, and a federal budget and election campaign that seemed to bypass business, have created a sense of uncertainty and disappointment,” he said.

“The other force that can’t be ignored is the impact of government policies, legislation and compliance – commonly referred to as red tape. This is now the second biggest issue for business after costs, and has consistently climbed up the ranks for the past few surveys.”

Rohde Egg Co., a family business led by father-son duo John and Martin Rohde, produces about 30 million eggs per year and is currently undergoing a major expansion at its Tarlee farm.

Currently operating 20 free range layer sheds, the Rohdes are building another four sheds plus a new production facility.

However John Rohde said the company’s growth ambitions were being held back by rising compliance costs and uncertain approval processes.

“Environmental and building approvals from local and state governments have unfortunately delayed the process a few times,” Mr Rohde said.

“As a result, we have 30,000 fewer birds on the property now than we planned, and that unfortunately flows on to the shortages consumers are facing.

“Compliance costs can add up to an additional 20 per cent of the price of the project and allow up to three years for building projects from planning to completion.

“We think the high time and financial cost of compliance can be brought down without sacrificing environmental, biosecurity or fire safety standards.”

The survey’s business confidence index – a measure of how South Australian businesses expect the state and national economies to perform over the next 12 months – was also well down in the March quarter, falling 13.9 points to 80. It’s currently at its lowest level since June 2023, with just 13.7 per cent of respondents believing the state’s economy will be either stronger or somewhat stronger in the next 12 months.

Originally published as South Australian Business Chamber survey reveals huge fall in trading conditions