Pop quiz: According to the USDA regulations for organic food labeling, how much of a food must be made with organically-produced ingredients before the word "organic" can be used on the label?
A. 70%
B. 95%
C. 100%
The correct answer is A. A product containing up to 30% non-organic ingredients may still be labeled as being "made with organic (whatever the organic ingredients are)."
Perhaps you thought the question was worded a bit misleadingly. If you answered B, you may still consider yourself correct. The food itself may be labeled plainly as "organic" if it contains up to 5% non-organic ingredients.
There is something in the regulations that appears to be a curious contradiction. § 205.301(c), the paragraph describing requirements for foods labeled as "made with organic" ingredients, states: "Nonorganic ingredients may be produced without regard to paragraphs (4), (5), (6), and (7) of § 205.301(f)." However, § 205.301(f) says it applies to "all ingredients identified as 'organic,'" and § 205.301(f)(7) says the ingredients must not "Include organic and nonorganic forms of the same ingredient." Thus it appears that a food "made with organic" ingredients is both permitted and forbidden to mix organic and non-organic ingredients.
Reference: http://www.ams.usda.gov/nop/nop2000/Final%20Rule/regtext/reg-labeling.htm (5 Jun. 2001).