The study examined hide production and economic losses of inferior hide grades in Egypt during 2002 to 2013. Data were obtained from the Central Agency for Public Mobilization and Statistics for various livestock, and analyzed using descriptive statistics and one-way or two-way analysis of variance (ANOVA). The majority of hides produced were from buffaloes and were Grade 1 hides. Overall, the losses from condemned hides decreased from EGP1,756 in 2002 to EGP425 in 2013 (a decrease of 76%). Losses from Grade 3 hides also decreased from EGP141,369 in 2002 to EGP 63,859 in 2013 (a decrease of 55%). A concerted effort should be made to increase production from buffaloes to generate more revenues. Although the losses from both condemned and Grade 3 hides have been declining, we recommended the establishment of a buffalo hide quality grading system, and the development of an Extension education program to avoid activities that lead to losses.