A very delicious looking ham. A grand total of 2 are available in-game.
The first ham is available early in the game. A second ham can be received from The Director near the end of the game, if your mental health is good.
The ham can be eaten, or alternately cooked to create a 'steamed ham'. Once cooked, the steamed ham can also be combined with a tin of beans or pickles to produce a 'Ham 'n beans' or a 'Ham 'n Pickles', respectively.
Another use for the ham very early in the game is to distract a Thinman that is lurking on 2F. Hanging the ham on a Butcher Hook in apartment 202 will cause the Thinman to be trapped on it, allowing 'you' to circumvent the monster. Be aware that doing so will cause you to effectively 'lose' the ham, as the monster will not disappear. However, killing the monster will allow you to once again retrieve the ham from the Butcher Hook.
Eating the ham raw will increase mental health, however a cooked ham will provide a much more positive boost. Combining the ham with beans or pickles will further compound this effect.