The most common and most likely answer to this crossword clue is the 8 letter word BISCOTTI
I've seen this crossword clue in Financial Times
B
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Buddy explains!

The straight part
We know that "Italian’s baked produce" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case italian’s baked produce = biscotti.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does BISCOTTI mean?
BISCOTTI noun- A hard, usually nut-flavored biscuit, derived from the Tuscan cantuccio.