Food firm caught in embargo (5)
I believe the answer is:
bacon
'food' is the definition.
(bacon is a kind of food)
'firm caught in embargo' is the wordplay.
'firm' becomes 'co' (a firm is a company).
'caught in' is an insertion indicator.
'embargo' becomes 'ban' (I've seen this before).
'co' going inside 'ban' is 'BACON'.
(Other definitions for bacon that I've seen before include "Cured back or side of pork" , "Painter; cured meat" , "sizzler" , "Salted pig-meat" , "Eg, rashers" .)