Food processor that is broken by small people (8)
I believe the answer is:
colonise
'people' is the definition.
(colonise can mean to people or populate a colony)
'food processor that is broken by small' is the wordplay.
'food processor' becomes 'colon' (the colon helps process food in the body).
'that is' becomes 'ie' (abbreviation for id est, 'that is' in Latin).
'broken by' indicates putting letters inside (inserted letters break into the word).
'small' becomes 's' (abbreviation - e.g. clothes size).
'ie' going around 's' is 'ise'.
'colon'+'ise'='COLONISE'
(Other definitions for colonise that I've seen before include "Establish a state in conquered territory" , "Form a settlement in a foreign country" , "Populate, settle" .)