It's knitted for a milk producer (6)
I believe the answer is:
jersey
'milk producer' is the definition.
(Jersey is a type of cow)
I don't understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for jersey that I've seen before include "One over the moon might have been such" , "Woollen garment from Channel Island" , "producer for farming programme?" , "Clothing" , "One of the Channel Islands" .)