Tanzania has been undergoing privatization and structural reform since the 1980s. With the dissolution of the Tanzanian TeaAuthority (TTA), the parastatal organization concerned with tea development, many smallholder farmers have become reliant on local estates, owned by transnational corporations, for purchasing tea, and providing inputs. Both smallholders and estate managers want smallholder tea production to increase, but a number of barriers prevent this from happening. This research is based oninterviews with smallholders and estate managers. It analyzes the obstacles to sustainability and makes a number of suggestions for overcoming them.