Steer to encircle extremely raggedy creature (4)
I believe the answer is:
oryx
'creature' is the definition.
(I've seen this before)
'steer to encircle extremely raggedy' is the wordplay.
'steer' becomes 'ox' (a steer is a castrated ox).
'to encircle' means one lot of letters goes inside another.
'extremely' means to remove the middle letters (only the extremes of the word are used).
'raggedy' with its centre removed is 'ry'.
'ox' placed around 'ry' is 'ORYX'.
(Other definitions for oryx that I've seen before include "African long-horned grazer" , "Long-horned African antelope" , "horny beast" , "creature" , "African native" .)