Test toil needed to produce dagger (8)
I believe the answer is:
stiletto
'dagger' is the definition.
(I know that stiletto is a type of dagger)
'test toil needed to produce' is the wordplay.
'needed' is a charade indicator (letters next to each other).
'to produce' indicates an anagram.
'test'+'toil'='testtoil'
'testtoil' with letters rearranged gives 'STILETTO'.
(Other definitions for stiletto that I've seen before include "Slender dagger, heel" , "Type of shoe" , "Small dagger with a tapered blade" , "Stabbing dagger or high heel" , "Kind of heel" .)