Although buffalo populations expand in 43 courtiers in the world, only four countries are producing more than 98% of the world buffalo milk in 2007 and around 73% of the world buffalo meat in the same year. These are China, Egypt, India and Pakistan. Egypt is almost the only country in Africa that raises Buffalo. Accordingly, this study focuses upon the Present Situation and Future Perspective of Buffalo Production in Egypt. Although there was a growth rate in the number milking animals the percentage of milking buffaloes in the total stock, has decreased from about 46% to 42% along the period (1991¬2007). The average annual milk yield per head increased from 957 kilograms in 1991 to about 1394 in 2007, at an annual growth rate 3%. There was an increase in the number of slaughtered animals at 1.5% a year as swell as an increase in the average carcass weight from 133 Kg to 174 Kg at annual rate of 1.9% over the last three decades The buffaloes share by one half of milk and around 42% of red meat production. The buffalo production systems recognize higher profitability and return to investment, and lower net cost of 1-kilogram of milk (4% fat), than cattle, even the exotic breeds. Estimating the nominal protection coefficient for buffalo milk and meat production in Egypt showed that Egypt has apparent comparative advantage in producing milk rather than meat from buffalo. Therefore, the development plan should focus upon raising buffalo milk productivity, Making meat Production as a secondary Joint product from buffalo ‘s enterprise. As the progressive buffalo farms showed potential productive and reproductive performances, they should be as nucleus farms that provide the traditional farms with improved genetic makeup.