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Sliding food inputs boost these stocks: Analyst

Falling food commodity prices bode well for producers with limited international exposure, an analyst said on Wednesday.

"They make the products more affordable for the consumer, particularly that middle-income consumer who really has been beaten badly in the past five years," said Jonathan Feeney, food and beverage analyst at Athlos Research, on CNBC's "Power Lunch."

Many key food input prices have dipped significantly this year. Lean hogs and coffee have both fallen more than 20 percent, while sugar and wheat are down about 10 percent.

Anthony Boccaccio | Stone | Getty Images

Cheaper inputs should help sales volume for food companies, Feeney said. But the dollar's sustained strength against key currencies could damper the effect for companies with a large global footprint, he said.

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Feeney believes Dean Foods, which is affected little by currency pressures, should get a tailwind from falling milk prices. He also contended that rising chocolate prices haven't hurt demand for Hershey and that J.M. Smucker will get a boost from falling coffee prices.

"The companies I just mentioned have pretty small exposure overseas," Feeney said.

Read MoreHere's why chocolate prices are up

Jeff Kilburg, founder and CEO of KKM Financial, agreed that falling prices were "good news" for producers and consumers. He added that some companies will benefit less than others considering currency headwinds.

"I do worry a little bit about Kellogg and General Mills because they have warned about the U.S. dollar's strength and the headwinds overseas," he said.