Many organic products are labelled with "k.b.a." which means controlled biological cultivation. Is this allowed?

Austria

Organic food is defined as the product of a farming system, which avoids the use of man-made fertilisers, pesticides, growth regulators and livestock feed additives. Instead, the agricultural systems rely on crop rotation, animal and plant manures, some hand weeding and biological pest control.
The difference between "organic" and "conventional or traditional" foods is in the production. All food sold as "organic" must be produced according to European laws on organic production. "Organic" farming is the description used in English-speaking countries, whereas in other markets "Bio" or "Eco" are the more usual product descriptions. Because organic food production is a specific system of production, it is essential to ensure that there is a credible guarantee of authenticity of organic production methods from primary production to consumption. In 1991, the European Union passed legislation 2092/91, which sets out in detail how food must be produced, processed and packaged to qualify for the description "organic". The regulation also specifies detailed criteria for the inspection and subsequent certification of food producers, importers and processors.

Further reading:

Backgrounder on agriculture
http://www.eufic.org/en/quickfacts/food_agriculture.htm#07

To see what is allowed in organic farming in the EU and how it is defined see the COUNCIL REGULATION (EEC) No 2092/91 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs:
http://europa.eu.int/eur-lex/en/consleg/pdf/1991/en_1991R2092_do_001.pdf