Food firm trapped in embargo (5)
I believe the answer is:
bacon
'food' is the definition.
(bacon is a kind of food)
'firm trapped in embargo' is the wordplay.
'firm' becomes 'co' (a firm is a company).
'trapped in' means one lot of letters goes inside another.
'embargo' becomes 'ban' (I've seen this before).
'co' inserted within 'ban' is 'BACON'.
(Other definitions for bacon that I've seen before include "Meat - essayist - painter" , "sizzler" , "early scientist" , "Salted and smoked pig meat" , "gammon" .)