MARKET support mechanisms for the sheepmeat sector are encouraging the ''empty ewe'' syndrome and causing the loss of market opportunities at home and abroad, according to meat wholesalers.

They claim that with recent market conditions, too many producers have been content to run a ewe flock to collect the subsidies without producing lamb.

''The British market is under-supplied with home produced lamb, which is one of the products for which our conditions are most suited,'' said Janet Lim of the Federation of Fresh Meat Wholesalers following its annual conference at the weekend.

''It is of great concern to us that too many producers may be taking their eyes off the ball of satisfying market needs, and that means quality as well as quantity.

''Lamb meat must be produced at affordable prices for a quality product. There should be no misunderstanding about this because lamb meat has no commercial future as a luxury food item.''

John Thorley, chief executive of National Sheep Association, also admitted to concern about the empty ewe syndrome but put this down more to the depressed state of the market, largely due to export problems and the UK's specified risk materials legislation, rather than the subsidy system.

However, some carcasses have been exported in recent weeks and there was a real hope for agreement with the French on the split carcass issue.

''All we will need then is for the pound to go down against the French franc,'' said Thorley.

Because of their links with the lamb market price, ewe subsidies are regarded as part of the ''blue box'' of support measures which may be axed in the next round of the World Trade Organisation talks.

However, there are hopes that, because Europe is a major importer of third country lamb - the UK imports some 220,000 tonnes of New Zealand lamb a year - the

subsidies may continue.