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State-owned livestock farms play an important role in enhancing food security, rural employment, and agricultural development in Sri Lanka. Despite this importance, many government-managed livestock farms continue to experience persistent underperformance in terms of productivity, profitability, and operational efficiency evident by their published annual reports. This study investigates the key causes of underperformance in state-owned livestock farms, considering X Farm in Sri Lanka. The research adopted a mixed-method single case study approach, integrating quantitative analysis of farm production and financial data from 2019 to 2024, complement with qualitative insights obtained through interviews, questionnaires, and field observations. The study examined internal factors such as management practices, labour motivation, supervision, resource utilization, and adoption of modern technologies, alongside external factors including vulnerability to adverse climatic conditions, infrastructure facilities, market access, and policy-related constraints. The findings revealed that high and inefficient feed costs, weak managerial effectiveness, lack of employee training and incentives, and ineffective monitoring and supervision are the main contributors to underperformance at X Farm. Financial performance showed a fluctuating but overall declining trend from 2019 to 2024, with profits peaking at 100 million in 2020 before falling to 70 million in 2021, 60 million in 2022, 40 million in 2023, and 15 million in 2024. Cost analysis indicated that feed accounted for 73.1% of expenses, followed by maintenance (14.9%), labor (9.9%), and other costs (2.1%). Management assessment revealed that 64% of employees rated management as average, 18% as good, 13% as poor, and 4% as excellent, while nearly 90% received recognition. Out of the total farm extent of 199.6 hectares, only 25% was used for grazing and 15% for maize, leaving nearly 60% underutilized, mainly due to poor facility maintenance. The study concludes that improved management, motivated and trained labor, efficient resource use, and modern technology adoption are key to enhancing farm performance and sustainability.
(Keywords - employee training, productivity, resource utilization, sustainability, underperformance)
