Source of fruit or vegetable (7)
I believe the answer is:
orchard
'source of fruit' is the definition.
(place where fruit trees grow)
'or vegetable' is the wordplay.
'vegetable' becomes 'chard' (chard is a kind of vegetable).
'or'+'chard'='ORCHARD'
(Other definitions for orchard that I've seen before include "Where fruit trees are grown" , "land for fruit-growing" , "Fruit-growing area" , "Plantation of fruit trees" , "Place for abundant fruit" .)