UPDATE 1-J.M. Smucker cuts Folgers coffee price by 6 pct in U.S.

NEW YORK, Feb 19 (Reuters) - Major U.S. coffee roaster J.M. Smucker Co cut retail prices on its flagship brand, Folgers, and most of its packaged coffee, including Dunkin' Donuts, by about 6 percent, effective Tuesday, due to a sustained decline in green bean costs, the company said.

Smucker, based in Orrville, Ohio, is often the trendsetter for coffee prices in the United States. Its last price change came in May 2012, when it cut retail prices by 6 percent.

A spokesman for Kraft Foods, maker of Maxwell House coffee, told Reuters in an email that it had "no news to share at this time" when asked about coffee price changes.

Arabica futures on the ICE Futures U.S. market have dropped more that 50 percent since May 2011. On Friday, the benchmark contract hit the lowest level in more than two and a half years at $1.3965 per pound.

Robusta futures trading on the Liffe market are down roughly 22 percent from a high of $2,661 per tonne reached in March 2011, sitting at around $2,056 per tonne intraday on Tuesday.

While arabica coffee has traditionally been used in roast and ground blends, global demand for the lower-cost robusta bean has risen as many roasters are reported to have increased its use in brewed blends. Traditionally, robusta beans were processed into instant coffee.